Quilter, one of the leading UK financial services providers, is undergoing a skilled persons review of its ongoing advice services, as mandated by the Financial Conduct Authority (FCA). This follows a broader FCA initiative last year, which collected data from 20 major advisory firms to assess their advice practices. Analysts at Panmure Liberum estimate Quilter’s potential financial liability at £115 million, significantly lower than the £426 million provision set by St James’s Place (SJP).
Quilter’s Market Position
Formerly Old Mutual, Quilter operates one of the UK’s most accessible and cost-effective investment platforms, widely adopted by independent financial advisers (IFAs). Its offerings include pensions, investments, and a robust Wealth Select Managed Portfolio Service (MPS), which reached £16 billion in assets by mid-2024.
The review focuses on Quilter’s Wealth Management division, where some advisers may have failed to conduct regular client reviews despite charging ongoing fees.
This in itself has created some confusion for customers, as many customers of Quilter, are not customers of Quilter’s Wealth Management division, but simply use their pension or investment platform. This is not to say that those customers will not have legitimate complaints, however it is likely that their complaint may not be with Quilter but with a regulated third party such as an Independent Financial Adviser (IFA).
Importance of Regular Reviews
Financial advisers, whether at Quilter or elsewhere, are obligated to perform periodic reviews of clients’ pensions, investments, and financial circumstances, such as risk tolerance and changes in client circumstances, to ensure the financial planning advice is aligned with their goals, especially for retirement planning. Clients who have not received these reviews may be eligible to file complaints.
Financial Implications
Panmure Liberum’s analysis, based on Quilter’s Q4 2024 trading statement, projects a £115 million redress provision, equating to roughly 8p per share if Quilter absorbs the full cost without recovering funds from advisers. The review process itself may incur additional costs in the “high single-digit millions” for consultants in the second half of 2025. Quilter will provide further details during its full-year results announcement on March 5, 2025, but has not yet confirmed whether funds will be reserved for compensation or review expenses.
Investment Outlook
Despite the potential redress costs, Panmure Liberum maintains a “buy” rating for Quilter, with a target share price of 180p. The firm’s shares trade at a 2025 price-to-earnings (P/E) ratio of 14.8x, below the sector average of 18.1x, suggesting the market has already priced in the provision. Analysts argue Quilter deserves a valuation closer to its peers, driven by:
- Cost-saving measures
- Enhanced adviser productivity
- Growth in its new platform
- Expansion of in-house advisers
- A projected 4% dividend yield in 2025, appealing to income-focused investors
The Lion trust Special Situations fund, managed by Anthony Cross, recently invested in Quilter, citing its reliable recurring revenue model.
Competitive Strengths
Quilter’s Wealth Select MPS, now accessible on third-party platforms, is a market leader, competing with offerings like Tatton. The growing trend of IFAs outsourcing investment management has fueled its success. Quilter’s investment platform also outperformed peers in Q4 2024, with improved inflows reinforcing its competitive edge.
Customer Claim Guidance
Clients of Quilter’s Wealth Management or other financial advisers who have not received regular annual reviews are urged to lodge a complaint to have their case assessed.
If you are confident that your claim relates to a claim against Quilter’s Wealth Management division, then you can bring a complaint directly through Quilter’s direct channels.
However, for those who wang professional guidance or lack the time or resources to pursue a claim, HT Legal offer no-win, no-fee representation, including escalation to the Financial Ombudsman Service and the courts if needed.
Customers can book a no-obligation consultation with a pension and investment specialist to establish whether their may be grounds for claim and see if HT Legal Ltd is the right company to help pursue a complaint on their behalf.
Conclusion
While Quilter’s Wealth Management arm may have faced some regulatory challenges, its overall position, built on strong fundamentals and affordability will continue to see Quilters platforms and funds favored by UK Financial Advisers. The firm is clearly committed to addressing concerns within it Wealth Management Division which is only one piece of a long established and highly successful organisation.