Wealth manager and plaform operator Quilter has allocated £76m in funds for an ‘ongoing advice review’ and may ask some advisers to pay back if clients have paid for ongoing advice which has not been delivered, it revealed today in its annual results.

The firm said a review had found that some clients may have paid for ongoing advice reviews from Quilter appointed reps which were not carried out.

The firm said today it has reserved £76m for “customer remediation.”

The firm will ask clients who believe they have not received an ongoing review to contact Quilter directly rather than Claims Management Companies.

The company said that its Ongoing Advice / Skilled Person Review, started last year, was nearing completion and expected to be done by the second quarter of this year.

The firm said it also welcomed the decision by the FCA on 24 February to order a general ongoing advice review across the advice sector.

Chief executive Steven Levin said an advice review was the right thing to do and the company needed to deal with cases where advisers had been paid for advice which was not provided.

In the firm's results statement today he said: “In June 2024, a Skilled Person was appointed to conduct a review and provide a view to the FCA on whether the delivery of ongoing advice services by Appointed Representative firms in the Quilter Financial Planning (QFP) network was compliant with applicable regulatory requirements. This work is well advanced, and the final report is expected to be submitted to the FCA in the second quarter of 2025.

“As the review has progressed, the analysis of our historical data and practices has supported our view that, except in limited cases, where clients have paid for ongoing service, this has been provided. We also note that the actual number of customer complaints received by Quilter on this issue remains low.

“Although the Skilled Person Review is yet to complete and will be the subject of further discussions with the FCA, we have concluded that in those limited instances where clients may not have been provided with the expected level of service from their adviser, some form of client remediation is likely to be appropriate. Our best estimate of the cost of undertaking this work, together with potential cost of client remediation (plus interest), amounts to some £76 million and accordingly we have recognised a provision for this amount.

“In line with FCA guidance, we would encourage any clients who believe that they have paid for and not received an ongoing advice service from their adviser to contact us directly rather than approaching a Claims Management Company. This will ensure that any amounts that may be due to them are received in full.

“We also have the ability to seek appropriate reimbursement from the relevant advisers who have been unable to demonstrate that the ongoing servicing paid for by the client was provided.” 

Despite the cost of the advice review the company said it had an “excellent” year in terms of net inflows. Its High Net Worth and Affluent segments delivered “good profit progress” and significantly higher new business levels.

Overall Assets Under Advice and Management rose 12% to £116.3bn. Pre-tax profit rose from £167m to £196m.

Revenues grew by 7% to £670 million (2023: £625 million). The firm said this reflected higher management fee revenue on higher asset levels combined with increased investment revenue generated on shareholder funds.

Separately, the company is continuing to invest in its digital capabilities. In September it acquired NuWealth, a small online Direct to Consumer (D2C) business. Quilter says the acquisition accelerates its digital capabilities, enabling it to onboard clients directly. The move will add another channel to its distribution capability, it said.

The company plans to use NuWealth will support advisers to “nurture early-stage clients” who can grow into core advisory relationships over time.