QuilterAug 11 2021

Quilter increases redress set aside for DB transfers

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Quilter increases redress set aside for DB transfers

Quilter has increased the amount it has set aside to cover compensation relating to the Lighthouse DB transfer review.

The company has increased this amount by £7m, taking the total to £35m, because the skilled person review currently taking place uncovered further instances of unsuitable DB transfer advice.

Quilter, which bought Lighthouse in 2019, said the skilled person review was due to be completed in the first half of 2022.

The company said: "Our focus remains on doing the right thing by any customers who were poorly advised, even though this advice predates our acquisition of Lighthouse."

The information was published in Quilter's half year results, which also reported pre-tax profits up by 20 per cent to £85m in the first half of the year.

The company also reported total assets under management were up 7 per cent to £126.6bn at June 30, 2021.

Quilter said that of the pre-tax profits reported, £29m came from Quilter International.

Earlier this year, Quilter announced the sale of Quilter International to insurer Utmost Group for £483m.

The sale, which is subject to regulatory approval, is expected to complete in the fourth quarter of 2021. 

Speaking to FTAdviser this morning, Paul Feeney, chief executive of Quilter, said the results demonstrated strong growth in flows across the business.

Feeney said: “We will succeed if we create wealth better for our clients and our advisers than our competition do, and it's as simple as that. 

“That is why we've made the investment we've made, and why we've built the company we've built. Now in the next few years, it is for us to show the market and our advisers, just what we can do.”

In the results, he said: “With the sale of Quilter International, our results demonstrate good early progress on our more focused, UK-based strategic path and gives a taste of what we know our business can deliver in the future.

“We are ahead of where we planned to be at this stage and are on track to meet our operating margin targets of 25 per cent in 2023 and 30 per cent by 2025."


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