"Our best estimate of the cost of undertaking this work, together with potential cost of client remediation (plus interest), amounts to some £76 million"
Quilter has announced that it has set aside £76 million as part of a skilled persons review into whether clients received ongoing advice services.
The review, which began in June 2024 and is expected to complete in Q2, has so far found "limited cases" where clients have paid for ongoing service and this has not been provided.
Quilter was one of 20 large firms contacted by the FCA over concerns around ongoing advice services. The review will provide a view to the FCA on whether the delivery of ongoing advice services by appointed representative firms in the Quilter Financial Planning network was compliant.
Today, the network revealed that although "customer complaints received by Quilter on this issue remain low... some form of client remediation is likely to be appropriate" in instances where clients have not been provided with the expected level of service from their adviser.
Quilter says it may also "seek appropriate reimbursement from the relevant advisers who have been unable to demonstrate that the ongoing servicing paid for by the client was provided".
Last month, the FCA asked firms to check they are meeting obligations around ongoing advice, stating that, in a small number of cases, firms aren't attempting to provide the services customers are paying for.
In its full year results, published today, Quilter commented: "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."
