Quilter has reported record core net inflows of £5.2bn for 2024, while revenues grew by 7%, as CEO Steven Levin said the firm’s transformation plans are delivering.
Adjusted profit before tax increased by 17% to £196m, and operating margins also grew two percentage points to 29% last year. Total assets under management and administration (AUMA) now stand at £119.4m, an increase of 12% on 2023.
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Levin commented: “When I took on the role of CEO in late 2022, it was clear that we needed to apply more urgency to our transformation plans. Our net inflows were running at 2% of opening assets, our operating margin was well below peers, and we needed to improve efficiency. As a result of our efforts over the last two years, I am pleased to report that Quilter is in much stronger shape today. We have a well-positioned high net worth franchise and the UK’s largest, fastest growing, scale adviser platform in our affluent segment. We are primed for future growth.”
Looking further into Quilter’s different segments, the high-net-worth division increased revenue by 7% to £226m, while the affluent segment revenues grew by 8% to £424m.
From a flow perspective, Quilter saw “excellent” inflows in 2024, and performance accelerated over the course of the year with each quarter increasingly stronger. Total net inflows into core business were 5% of opening assets.
On the group’s platform, IFA grows inflows increased by 66% to £8.8bn.
FCA review
Quilter’s annual results also flagged the possibility of reimbursing clients some £76m following an ongoing advice review. It outlined how in June 2024 the FCA conducted a review on whether the delivery of ongoing advice services by appointed representative firms in the Quilter Financial Planning (QFP) network was compliant with applicable regulatory requirements.
“This work is well advanced, and the final report is expected to be submitted to the FCA in the second quarter of 2025,” Quilter’s statement said.
“As the review has progressed, the analysis of our historical data and practices has supported our view that, except in limited cases, where clients have paid for ongoing service, this has been provided. We also note that the actual number of customer complaints received by Quilter on this issue remains low.”
Although the review is yet to complete, Quilter has concluded that in those “limited instances where clients may not have been provided with the expected level of service from their adviser, some form of client remediation is likely to be appropriate”. This is estimated to be about £76m.
“As the broader advice regulatory landscape continues to evolve… we are fully supportive of the FCA’s intention to review the rules on ongoing advice to make sure that they remain fit for the future and help as many people as possible to access high quality support to build brighter financial futures for themselves,” the statement added.
This story was written by our sister title, Portfolio Adviser
