Adviser-focused platform Wealthtime (formerly Novia) has cut the amount of possible client compensation it has set aside over legacy assets to £10.5m.

It revealed the lower figure in its results for 2023, published last week.

The provision relates to legacy assets bought on to the platform prior to 2017 that, according to the firm, “affected a small number of clients.”

When revealing the possible compensation amount last year the firm reckoned it could total £11.6m.

The Bath-based platform said it made the provision after a “detailed evaluation of legacy investments during 2023, prompted by the evolving regulatory interpretation of historic guidance.”

It said the provision was reduced to £10.5m during 2023 as a result of "additional analysis" carried out during the year.

The company said it has PI insurance in place and expects to make a claim should the liability crystallise. 

Wealthtime reported pre-tax profits climbed 17.1% to £10.6m in 2023, with revenue increasing by 17.4% on the previous year.

It said AUA increased by 1.8% to £8,887m in the year, driven in part by an improvement in equity market returns during the year.

Patrick Mill, chief executive at Wealthtime, said: “We delivered robust growth in 2023, despite the wider market challenges that the industry faced.”

Looking ahead he said: “This year we continue to focus on, and invest in, transforming our service to achieve the best outcomes for advisers and their clients.” 

Platforms Novia and Wealthtime unified under the single group brand of Wealthtime last November as part of the final stage of a group-wide merger of the firms by their owner, the private equity group Anacap.

AnaCap Financial Partners bought the Novia platform in 2021 to add to its existing Wealthtime platform.