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* Compliance costs, tax, and funding costs could rise
* Lloyds joins Standard Life, RBS in warning on 'yes' vote
* Lloyds registered in Edinburgh, 5,000 staff in Scotland
By Matt Scuffham
LONDON, March 5 (Reuters) - State-backed Lloyds BankingGroup said it could face significant cost increases ifScotland votes to become independent from the rest of the UnitedKingdom.
The company, which has 5,000 staff in Scotland, joinsEdinburgh-based insurance and pensions heavyweight Standard Life and part-nationalised Royal Bank of Scotland inwarning of the risks of Scottish independence.
"The outcome could have a material impact on compliancecosts, the tax position, and cost of funding for the group,"Lloyds, which is 33-percent owned by the British government,said in its annual report on Wednesday.
The bank, which owns Bank of Scotland and is registered inEdinburgh, added that the impact of a "yes" vote in favour ofScottish independence was uncertain and it was assessing thepotential implications for the business and its customers.
Several industry sources have told Reuters that an optionfor financial services firms based in Edinburgh would be torelocate their registered offices to London but retain someoperations in Scotland.
Standard Life is so far the only major company to warn itcould move partly out of Scotland if Scots split from the UnitedKingdom. RBS has said a "yes" vote would probably significantlyhit its credit ratings, impacting its costs.
The debate over independence has focused largely on thefinancial impact of Scotland ending a 307-year tie to England,although both sides have started to make more emotional appealsas opinion polls show the trailing nationalists gaining groundahead of the September vote.
An Ipsos-Mori poll this week showed 32 percent support forindependence, 57 percent against and 11 percent undecided.
Scotland is home to the second largest financial servicesindustry in the United Kingdom, accounting for about 150,000jobs.
Scottish leader Alex Salmond called on all Britons onTuesday to back his campaign for an independent Scotland to helpcreate a northern economic counterweight to stop London fromsucking the life out of the rest of the country.
