Standard Life Wealth chief executive Richard Charnock will report in future to Keith Skeoch, chief executive of Standard Life Investments. Mr Charnock will also be appointed to Standard Life Investments' board from 1 January, subject to FCA approval.
Standard Life said it was making the move because recent acquisitions made it sensible to align the two divisions.
Mr Skeoch said: "Following the recent acquisition of Newton Private Clients, Standard Life Wealth has become a substantial asset management business, which has created a deeper operational and investment link between our two companies. It now makes sense to align our two businesses more closely.
"We believe this is a very positive move for both companies and will give Standard Life Wealth greater access to our award winning global investment platform, investment performance and investment solutions.
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"Over the next few months we will be working together closely to make sure the move goes smoothly for our businesses, our people and our clients.
"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."
Standard Life Investments was launched as an investment management company in 1998. Headquartered in Edinburgh, Standard Life Investments' maintains offices in a number of locations around the globe including Boston, Hong Kong, London, Beijing, Montreal, Sydney, Dublin, Paris and Seoul.
With £5.5bn assets under management and130 staff in offices in London, Birmingham, Bristol, Leeds and Edinburgh, Standard Life Wealth provides onshore and offshore wealth management services to UK and international High Net Worth and Ultra High Net Worth clients and charities.