Quilter has said sponsor-backed consolidation is becoming “an increasingly disruptive force” for its adviser distribution channel, prompting outflows from its platform and advisers to leave the business.
In its full-year results published today (March 8), Quilter said it was trying to leverage its new platform it developed with FNZ among larger IFA firms.
“Progress is in line with expectations, but it is, by nature, a gradual build,” the national wealth manager said.
The firm also said in its results that it was continuing to look at ways to ensure Quilter is attractive to advisers.
But new chief executive Steven Levin told FTAdviser that adviser numbers are not currently his main focus.
Levin, who took over the helm from Paul Feeney last year, said he is focused on better integrating advice firms it has bought over the years, with adviser growth returning to the fore once this is done.
He said the Quilter business is still more complex than it needs to be and that it has not integrated adviser businesses it has acquired as well as it could have.
The focus is therefore on consolidating systems, as well as ensuring individual advisers are productive.
“There are some things we need to enhance in our business, that will be the first focus area,” said Levin.
“Once we’ve done that, obviously we’ll want to grow our adviser base. I’m not going to give a target or number of advisers.
“Right now, it is about improving our advice business and then we’ll be focused on growing the number of advisers. So it’s an ‘and’, not an ‘or’.”
In its results, Quilter recorded a 9 per cent dip in revenue for Quilter Private Client Advisers, part of its high net worth segment. Revenue reached £21mn, compared to £23mn the previous year.
It also recorded a 5 per cent decline in revenues in its affluent segment to £387mn, which the firm said reflected weaker markets and the repositioning of its adviser base.
Profits across the business were down 3 per cent, from £138mn to £134mn, but Levin said this beat consensus earnings of £113mn.
The company also intends to cut its platform pricing by two basis points this year in order to remain competitive, having traditionally cut prices by one basis point per annum.
ruby.hinchliffe@ft.com
