Quilter’s platform migration faces delay due to coronavirus uncertainty
Quilter’s platform migration programme is facing delays and increased costs as the coronavirus pandemic creates growing uncertainty.
Quilter confirmed it was still preparing for the second phase of its platform migration, which is due by the end of this summer.
However Covid-19 makes the feasibility of this timeline more uncertain.
In February Quilter completed the first migration of 100 advisers to its new platform.
In a trading statement the firm said: “Quilter’s priority remains to complete the programme as quickly as possible while maintaining a low risk tolerance – achieving this may require extended timelines and, potentially, a review of the migration phasing.”
The lockdown may also “impact adviser readiness plans, training programmes and dress rehearsals ahead of the anticipated final migration date”
Quilter also reported that in the latter weeks of the first quarter, against a backdrop of market volatility, transfers from the platform to competitor platforms “reduced significantly”. Transfers in remained steady “due to a relatively higher level of business continuity and adviser support.”
The wealth management group said it intends to keep going with its share buyback and pay a final dividend. This is despite a fall in assets under management from £103.6bn in the first quarter of 2019 to £95.3bn in 2020.
Net inflows of £0.5bn were stable on the same period last year, with integrated net flows of £0.8bn compared to £2.6bn seen last year.
Management maintain Quilter is “operationally resilient” and remains focused on completing projects including the platform migration.
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