Quilter could pay remedial costs after it was one of 20 large firms the regulator wrote to following concerns over ongoing charges for customers.
In its preliminary full year results for 2023, published today (March 6), the firm revealed it was approached by the FCA and that it was now reviewing its past practice and data.
Steven Levin, CEO of Quilter, said: “Consistent with our focus on delivering good customer outcomes, we are commencing a review of historical data and practices across our network to determine what, if any, further action may be required.
“This may lead to remedial costs but it is too early to quantify.”
On February 15, the FCA wrote to 20 of the biggest advice firms requesting information about their ongoing advice services on the back of the consumer duty.
The regulator asked for data on the number of clients due a review of the ongoing suitability of the advice, for which clients continue to be charged after the advice has been given.
Levin said complaints related to ongoing servicing have remained low for the past four years.
He said any cases where customers do not receive the service they have paid for are investigated, and where appropriate, remediation has taken place.
In 2023, the firm saw adjusted profit before tax increase by 25 per cent to £167mn, up from £134mn in 2022.
Overall, assets under management and administration ended 2023 at £103.4bn, compared with £96.2bn at the end of 2022.
The firm also said cost savings of £45mn were completed at the end of 2023, a year earlier than expected, with a target for a further £50mn of savings by the end of 2025.
This includes selling off property and simplifying an internal administration and governance.
There were net inflows into the core business of £832mn, compared with £2.1bn the year before.
Levin, said: “2023 was a year of strong delivery. We wrote a higher level of new business and delivered record profitability through higher revenues and 3 per cent lower costs.
"Our Affluent segment is delivering strong growth while our High Net Worth segment is investing in growth which will be realised over the next few years."
New IFA flows in the company’s affluent business were around 7 per cent higher in 2023, despite lower levels of new business across the market.
Despite this, there were net outflows in both the affluent and high net worth business.
The results said: “We saw net outflows in both segments reflecting higher levels of redemptions and acquisitions of IFA firms and a small number of larger corporate/charity accounts heavily influencing this outcome in our High Net Worth segment.”
In February, Quilter added its WealthSelect managed portfolio solution to three third party platforms which it said will provide a source of new business into the company.
tara.o'connor@ft.com
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