UK's Quilter warns of potential 'remedial costs' amid regulatory scrutiny

Credit: REUTERS/Dado Ruvic

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LONDON, March 6 (Reuters) - British wealth manager Quilter QLT.L said on Wednesday it would review historical services provided to customers amid heightened regulatory scrutiny of charging by fund managers.

Quilter said the review may lead to "remedial costs", but that it was too early to quantify what those might be.

"...we are commencing a review of historical data and practices across our network to determine what, if any, further action may be required," the firm said, following a regulatory request for data on servicing from 20 advice firms last month.

The company also reported annual profit above analyst expectations on Wednesday, helped by steady demand from affluent clients for financial advice and portfolio management.

Analysts at JPMorgan welcomed the profit beat in a note, but said the risk of remedial costs could weigh on the stock, citing the experience of rival St James's Place SJP.L.

St James's Place SJP.L has seen its shares tumble in recent months after revamping its charges in October and disclosing gaps in its record-keeping for services provided to customers last month.

Quilter reported adjusted profit before tax of 167 million pounds ($212.2 million), up 25% from a year earlier.

Analysts were expecting adjusted pre-tax profit of 144 million pounds, according to a company-compiled consensus.

The company proposed a final dividend of 5.2 pence per share.

($1 = 0.7870 pounds)

(Reporting by Eva Mathews and Radhika Anilkumar in Bengaluru and Iain Withers in London; Editing by Varun H K and Sinead Cruise in London)

((Eva.Mathews@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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