Quilter is developing an additional adviser proposition, called Quilter Partners, which will operate as a franchise-style model
Quilter Partners will sit alongside the firms existing national and network offering and will operate as a franchise-style model, where firms will run under a co-branded arrangement.
Firms will use Quilter’s investment and platform propositions, "while maintaining the entrepreneurial drive of an owner-operated businesses model".
Steve Gazard, chief distribution officer at Quilter, said: “The pilot of Quilter Partners shows our commitment to offering the widest range of advice models across the market.
“It joins our existing practice buy out and management buy out options for firms and means advisers can work with us in whatever form best suits them.”
Quilter Partners will provide an opportunity for firms to realise the value they have built up within their businesses now and at the point of exit through a sale.
The firm will support their business growth and ensure continuity of advice for their clients when they decide to retire or exit.
Quilter expects the proposition to continue to be refined as the initiative progresses.
Gazard said: “We have one of the best propositions in the market that already enables good client outcomes.
“With Quilter Partners, we want to create an option that is fully aligned with our propositions while retaining the entrepreneurial drive that makes owner-owned advice businesses so successful.”
He added: “We have already signed up a number of founder firms to work with us on developing this proposition and we expect to add more later this year as we develop this initiative into a full commercial proposition. “
Quilter said the new model will complement the existing national business and provide an evolutionary option for adviser firms within the existing advice network.
The network supports owner-operated businesses operating under their own brand name using the Quilter platform and its range of solutions via its researched investment range.
Results
Elsewhere, Quilter's half year results for the period ended 30 June 2023, published today (August 8), showed an increase in assets under management and administration at £101.7bn, up from £98.7bn during the same period last year.
This was also up 2 per cent from December 31 when it stood at £99.6bn.
Quilter said this was due to positive market movements of £1.9bn and core business gross inflows of £5.5bn in the first half of the year.
Core net inflows in the first half were £0.7bn, up from £409mn in Q1 and £247mn in Q2.
However, this was down from the same period last year when it was £1.6bn.
Quilter said the inflows reflected a good performance in both the high net worth and affluent channels with a more muted performance from its IFA/Direct channels across both segments.
Market share of gross platform flows increased in both quarters.
Notably, Q2 flows were up 5 per cent year-on-year despite a 9 per cent decline in the overall market over the same period.
Steven Levin, chief executive officer of Quilter, said: “We have delivered a strong improvement in first half profitability, pleasing flow outcomes in the Quilter channel and improved our market share of new advised platform flows.
“Our business model is fully aligned with the principles of the consumer duty regime and my focus is on doing more for our customers to improve business momentum in the near-term, and deliver faster growth and higher returns to shareholders in the longer-term.
“We are targeting an additional £50mn of simplification savings by 2025 and we expect consensus profit estimates for this year to increase materially.”
Meanwhile, adjusted profit before tax increased by 25 per cent to £76mn, up from £61mn in 2022.
Quilter said it expects to deliver its target £45mn simplification cost savings by end 2023, a year earlier than planned.
An additional £50mn of simplification savings are targeted for delivery by the end of 2025.
sonia.rach@ft.com
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