Standard Life's flotation could value it at �4bn

It was responding to a report in the Financial Times that continuing talks with the Financial Services Authority (FSA) might delay the move.

The paper said the regulator wanted to be reassured on the position of endowment policyholders before flotation proposals were finalised.

But Standard Life said demutualisation plans were at an "advanced stage".

The Edinburgh-based group is in talks with the FSA over complaints regarding its endowment policies, but said this was nothing out of the ordinary.

"It should be of no surprise to anyone that Standard Life has a strict focus to keep its regulator fully informed," a company spokesman said.

No-one from the FSA would comment on how its talks with the mutual on the issue of endowment policies were proceeding.

'Full discussions'

The listing is expected to value Standard Life at more than �4bn ($7.1bn), making it one of the largest UK initial public offerings (IPOs) in recent years.

Final approval for the IPO move should be given by the board later in October, with eligible members due to vote on the proposal in early 2006.

A year ago, Standard Life set a deadline of May 2006 for most customers to lodge complaints over allegedly missold endowment policies.

According to the FT, if the talks with the FSA are not completed by the end of October, the flotation might have to be put back to 2007.

But the mutual's spokesman said: "Before proceeding [with demutualisation], the company must assure itself that there are unlikely to be major concerns on the part of our regulator or the independent expert who must report to the courts.