Standard Life Wealth will be into Standard Life Investments (SLI) effective 1 January 2014, subject to FCA approval.
As part of the reorganization, SLI chief executive Keith Skeoch will take the charge of both companies.
Also, Standard Life Wealth CEO Richard Charnock will join the SLI board and will report to Skeoch.
However, both SLI and Standard Life Wealth will remain as separate legal entities and retain their own branding.
Standard Life has said it does ‘not anticipate any job losses’ from the forthcoming merger.
Commenting on the move, Skeoch said: "We see substantial opportunities to accelerate the growth of Standard Life Wealth from its strong base as a whole-of-market discretionary fund manager of significant scale and market presence. Standard Life Investments’ infrastructure, internal expertise and international exposure will provide strong support for future growth."