TIDMQLT
RNS Number : 8919F
Quilter PLC
24 March 2022
24 March 2022
Quilter plc
Annual Report and Accounts 2021 and Notice of Annual General
Meeting 2022
Quilter plc (the "Company") announces that copies of the
following documents have been submitted to the National Storage
Mechanism and will shortly be available for inspection at
http://data.fca.org.uk/#/nsm/nationalstoragemechanism :
1. Annual Report and Accounts 2021 (the "2021 Annual Report");
2. Notice of Annual General Meeting 2022 (the "Notice"); and
3. Forms of Proxy for the Annual General Meeting 2022.
These documents will be posted to shareholders on Tuesday 5
April 2022. The 2021 Annual Report is also available to view online
at plc.quilter.com/annualreport and the Notice is available online
at plc.quilter.com/gm.
Annual General Meeting
The Company's 2022 Annual General Meeting (the "2022 AGM") will
be held on Thursday 12 May 2022 at 11:00am (UK time) at Senator
House, 85 Queen Victoria Street, London EC4V 4AB. In light of the
ongoing risk to public health posed by COVID-19, we will continue
to do all we can to take responsible precautions to help protect
the wellbeing of each other. We will monitor and follow the UK
Government guidelines and update our GM Hub at plc.quilter.com/gm
if our AGM arrangements change. Please ensure you check the GM Hub
regularly for up to date information about our AGM
arrangements.
Key dates for shareholders
The table below shows the key dates for shareholders in respect
of the 2022 AGM.
Posting Posting Last day Proxy date Record Date of
record date to trade for registered date to 2022 AGM
date * holders attend
and vote
Holdings Friday Tuesday - Tuesday Tuesday Thursday
on the London 25 March 5 April 10 May 10 May 12 May
Stock Exchange 2022 2022 2022 at 2022 at 2022 at
11:00am 6:30pm 11:00am
(UK time) (UK time) (UK time)
---------- --------- ------------ ---------------- ----------- -----------
Holdings Friday Tuesday Thursday Tuesday Tuesday Thursday
on the Johannesburg 25 March 5 April 5 May 2022 10 May 10 May 12 May
Stock Exchange 2022 2022 2022 at 2022 at 2022 at
12:00pm 7:30pm 12:00pm
(SA time) (SA time) (SA time)
---------- --------- ------------ ---------------- ----------- -----------
* Last Day to Trade is applicable only to holders on the
Johannesburg Stock Exchange. Holders can trade their shares up to
the close of business on this date and thereafter the register is
closed for the purposes of determining which holders are entitled
to vote in respect of the 2022 AGM.
Market purchase of own shares
Pursuant to Listing Rule 12.4.4, in addition to renewing the
Company's existing authority to make market purchases of its own
shares, the Company announces that it intends to propose a
resolution at the 2022 AGM seeking authorisation to enter into
contingent purchase contracts with each of: (a) J.P. Morgan
Equities South Africa Proprietary Limited; and (b) Goldman Sachs
International. The commercial purpose of this authority is to
enable the Company to purchase up to a maximum of 163,812,308
ordinary shares of the Company which are currently listed on the
Johannesburg Stock Exchange (such maximum to be reduced by any
purchases made pursuant to any general authority of the Company to
make market purchases of its own shares).
Full details in respect of the proposed resolution are set out
in the Notice.
Additional information
The following information is extracted from the 2021 Annual
Report (page references are to pages in the 2021 Annual Report) and
should be read in conjunction with the Quilter plc 2021 Full Year
Results announcement issued on Wednesday 9 March 2022. Both
documents can be found at plc.quilter.com/investor-relations and
together constitute the material required by DTR 6.3.5 to be
communicated to the media in unedited full text through a
Regulatory Information Service. This material is not a substitute
for reading the 2021 Annual Report in full.
Principal risks and uncertainties
The Directors have carried out a robust assessment of the
principal and emerging risks facing Quilter, including those that
would threaten its business model, future performance, solvency and
liquidity, as well as those risks that are non-financial in nature.
The articulation of these principal risks and uncertainties is
consistent with Quilter's Enterprise Risk Framework categorisation,
and with the 'Top Risk' reporting that is provided quarterly to the
Board Risk Committee and Board.
The Board requires management to put in place actions to
mitigate these risks, and controls to maintain risk exposures
within acceptable levels defined by Quilter's risk appetite. The
table below sets out Quilter's principal risks and uncertainties,
including Executive Committee member ownership and key mitigants
being implemented by management. The risk trend noted is the
residual risk trend (risk after the application of mitigants)
during 2021.
During the year we have removed Investment Management risk,
given a relative reduction in risks associated with investment
management activities as supporting control frameworks have been
enhanced. We have added new risks related to Strategic Delivery and
Climate Strategy, given the increased impact of both of these risks
to Quilter during 2021.
Business and strategic risks
Economic Risk owner 2021 risk trend Mitigation
environment Chief Stable 2021 activity:
Quilter's Financial * 2021 economic scenario testing at Group and
principal Officer subsidiary level.
revenue
streams are
asset value * The share buy-back programme was performed in
related and as tranches, to enable Board consideration of market
such Quilter conditions prior to execution.
is exposed to
the condition
of global
economic Planned and ongoing
markets. activity:
Whilst market * Stress and scenario analysis, including in respect of
conditions market shocks.
generally
stabilised
during * Ongoing enhanced monitoring of market and liquidity
2021 from the risk exposures.
COVID-19
pandemic, the
evolving
Ukraine crisis
is having
an impact on the
economic
environment
resulting in
short term
market
volatility.
Volatility in
debt, equity
and currency
markets may
adversely impact
customer
investment
portfolios which
in turn impacts
Quilter's
ability to
generate
fee-based
revenue.
--------------- ---------------- ----------------------------------------------------------------
Business Risk owner 2021 risk trend Mitigation
financial Chief Stable 2021 activity:
performance Financial * Continued 2021 in-year cost focus, with favourable
While the direct Officer out-turn against plan achieved.
impact
of the pandemic
on business * Longer-term expense targets established aligned to
performance the strategic Simplification programme.
moderated during
2021,
consequential
impacts Planned and ongoing
including activity:
inflationary * Propositional activity under Quilter's new segment
pressures and an model to drive revenue growth, including Wealth
increase Select+.
in the cost of
living could
impact
customers'
ability
to invest and
therefore
investment
inflows. The
Russian invasion
of Ukraine
creates
increasing
economic
and political
uncertainty
which could
impact consumer
confidence. The
potential
for tax
increases as
well
as direct
inflationary
impacts could
result in
adverse cost
impacts for
Quilter, acting
as headwinds
to our
performance. Any
negative impact
on earnings,
share price
and/or capital
position could
have a resulting
adverse effect
on Quilter's
market
credibility and
financial
standing.
--------------- ---------------- ----------------------------------------------------------------
Strategic Risk owner 2021 risk trend Mitigation
delivery (new Chief Not applicable 2021 activity:
for 2021) Executive * Sale of Quilter International, and realisation of the
Quilter has Officer post-Listing objective of becoming a modern UK wealth
embarked on manager.
an ambitious
strategy focused
on growth and * Establishment of the Simplification programme and
efficiency, identification of strategic initiatives.
while increasing
digitisation
and embedding
ESG wherever Planned and ongoing
possible. activity:
Achieving this * Full mobilisation of activities to support delivery
ambition will against Quilter's new strategic objectives.
require the
operation of a
robust strategic
delivery
framework, and
investment in
capabilities.
As we are now
embarking
on our next
strategic phase
and with the
ambitious
programme of
work needed
to deliver it,
we are further
increasing our
focus in
this area. Any
failure
to deliver on
the strategic
delivery
programme, could
expose the Group
to competitive
risks and impact
Quilter's
franchise value.
--------------- ---------------- ----------------------------------------------------------------
Change execution Risk owner 2021 risk trend Mitigation
Quilter Chief Reducing 2021 activity:
continues to be Operating * Successful final PTP migration.
subject to Officer
change execution
risk given an * Successful implementation of Workday as a strategic
ongoing platform for HR and Finance activities.
programme
of material
change projects,
although the Planned and ongoing
maturing of activity:
Quilter's change * Active management and prioritisation of the change
execution portfolio.
capabilities,
and the
successful * Enhanced executive oversight and change assurance.
completion of a
number
of key projects * Disciplined programme and portfolio governance
in 2021, arrangements.
including the
Platform
Transformation
Programme,
has reduced the
impact
of this risk.
The effective
embedding of new
technology
and process
across Quilter
is key for the
next phase.
Any loss of
focus on change
execution
disciplines
could
impact the
delivery of
the intended
benefits,
and risk
disruption to
continuing
operations and
the control
environment.
--------------- ---------------- ----------------------------------------------------------------
Climate strategy Risk owner 2021 risk trend Mitigation
(new for Chief Not applicable 2021 activity:
2021) Executive * Climate Risk Appetite statement development.
Quilter takes Officer
its
responsibility * Implementation of climate change scenario testing.
to the
environment
seriously, * Implementation of the required TCFD statement in this
and is document, and the associated TCFD report.
determined to
play
its part in
reducing climate Planned and ongoing
impacts. In activity:
order to do * Further development of Quilter's climate change
this, Quilter strategy including specifying targets.
must develop
and deliver an
achievable,
coherent,
comprehensive
and robust
long-term
climate
strategy to
manage climate
related
financial and
non-financial
risks. Failure
to do so
would result in
Quilter
being unable to
meet regulatory
and other
stakeholder
expectations,
and fulfil our
strategic
priority to
become the
responsible
wealth manager.
--------------- ---------------- ----------------------------------------------------------------
Operational and regulatory risks
Advice Risk owner 2021 risk trend Mitigation
Quilter's Chief Stable 2021 activity:
financial advice Executive * Ongoing remediation exercise to address historic
services are Officer - defined benefit pension transfer advice provided by
subject to Quilter Lighthouse to British Steel Pension scheme members
fundamental Financial and some other pension transfer cases, with a total
regulatory Planning provision of GBP29 million held to fund the exercise
conduct and resultant redress to these customers.
requirements to
assure
suitability of * Ongoing programme of work to enhance the control
advisory environment that supports the delivery of suitable
recommendations. advice in the Quilter Financial Planning business.
This risk
remains elevated
and stable,
as Quilter Planned and ongoing
continues to activity:
address historic * Completion of defined benefit remediation activity.
DB to
DC transfer
advice * Further uplifts of controls in operational processes
shortcomings supporting the delivery of suitable of advice.
of the acquired
Lighthouse
Group, as
announced by
Quilter in 2020.
Remediation
programmes are
ongoing
to ensure
impacted
customers
receive fair
outcomes and
to ensure
robustness of
the control
framework to
support the
ongoing delivery
of suitable
advice. Failure
to operate
effective
arrangements
to support the
ongoing
delivery of
suitable advice
could expose
Quilter to
risks associated
with customer
detriment,
regulatory
censure
and remediation
programmes,
with
consequential
impacts
to the Group's
business,
financial
condition and
reputation.
--------------- ---------------- ----------------------------------------------------------------
Information Risk owner 2021 risk trend Mitigation
technology Chief Stable 2021 activity:
Quilter's Operating * Technology transformation programmes across Quilter
business is Officer have achieved retirement of many legacy systems, with
dependent their replacement by modern cloud-hosted systems.
on its
technology
infrastructure * Retired systems include legacy UK Platform technology,
and applications and supporting systems in HR, Finance and Risk.
to perform
necessary
business
functions. Planned and ongoing
Much of activity:
Quilter's legacy * Technology transformation continues, with further
IT estate is system retirements.
currently
being replaced,
by cloud-based * Active systems monitoring.
applications,
thereby reducing
internal * Technology policy and standards compliance
complexity. arrangements.
Nevertheless,
a range of
legacy
applications
are still
supported,
including
the technology
platform
underpinning the
divested
Quilter
International
business,
which will be
supported
until 2023 under
a Transitional
Services
Agreement.
Failure
to manage
technology risk
could have a
material adverse
impact on
Quilter's
business,
resilience
capabilities,
operations,
financial
condition
and reputation.
--------------- ---------------- ----------------------------------------------------------------
Information Risk owner 2021 risk trend Mitigation
security Chief Stable 2021 activity:
Quilter's Operating * Completion of most elements of the Information
business, by Officer Security Improvement Programme, which has delivered
its nature, uplifted controls, processes and tools.
requires it
to store,
retrieve, * Cyber attack framework implementation.
evaluate
and utilise
customer and
Company data and Planned and ongoing
information, activity:
some of which is * Evolution of the information security framework in
highly the context of a cloud-based third-party application
sensitive. ecosystem.
Quilter and
its service
providers are * Cyber threat defences and monitoring.
subject to the
risk of
information * Information Security Policy and standards and
security associated compliance arrangements.
breaches
from parties
with criminal
or malicious
intent. Should
intrusion
detection and
anti-penetration
processes
not anticipate,
prevent
or mitigate a
network failure
or disruption,
it may have
a material
adverse effect
on Quilter's
customers,
business,
financial
condition,
operations and
reputation.
--------------- ---------------- ----------------------------------------------------------------
People Risk owner 2021 risk trend Mitigation
Quilter relies HR Director Stable 2021 activity:
on its talent * Launch of HR Transformation plan.
to deliver its
service
to customers. * Implementation of Workday HR to enhance HR related
People risk process.
has remained
heightened
during the
pandemic as Planned and ongoing
Quilter's people activity:
have adapted * Talent management and succession programme.
to new ways of
working
during a period * Performance and risk-adjusted remuneration
of significant arrangements.
change. Delivery
of Quilter's
ambitious new * Regular employee engagement surveys.
strategic
objectives will
require * Quilter's staff wellbeing initiative, 'Thrive'.
particular
skills and
competencies
to be
successful,
including
in digital and
ESG-related
competencies.
Failure to
attract and
retain suitable
talent may
impact on the
delivery of
Quilter's
strategy
and may have an
adverse
impact on
Quilter's
business,
its financial
and operational
performance and
its delivery
of service to
customers.
--------------- ---------------- ----------------------------------------------------------------
Third-party Risk owner 2021 risk trend Mitigation
Quilter procures Chief Stable 2021 activity:
certain Operating * Maturing of the Third-Party Risk Management
services from Officer arrangements, including systemisation of controls
third parties, within the Coupa procurement system.
which has
increased given
the significant * Centralisation of supplier management teams to
business facilitate consistency of approach.
process and
technology
outsourcing to
FNZ and Planned and ongoing
the deployment activity:
of multiple * Continued evolution of oversight approach, including
new cloud-based optimising for cloud-based applications.
technologies.
If Quilter does
not effectively * Third-Party Risk Management Framework and associated
oversee its policy and standards compliance arrangements.
third-party
providers, they
do not
perform as
anticipated,
or Quilter
experiences
technological or
other
problems with a
third party,
Quilter may
experience
operational
difficulties,
increased costs
and loss
of business,
potential
customer
detriment and
damage to its
reputation.
--------------- ---------------- ----------------------------------------------------------------
Operational Risk owner 2021 risk trend Mitigation
resilience Chief Stable 2021 activity:
Quilter provides Operating * Preparation for the March 2022 implementation of the
important Officer enhanced UK operational resilience requirements,
services for its including identification of Important Business
customers, Services.
and its ability
to maintain
these services * Business disruption exercises, including a scenario
during of significant service failure by a strategic
unforeseen supplier.
events is key.
The continuing
COVID-19
pandemic has Planned and ongoing
provided activity:
comfort on * Business Continuity and Crisis Management Policy and
Quilter's related policy compliance arrangements.
ability
to operate in a
severe * Systemised inventories of processes and dependencies.
operational
resilience
scenario. Any * Resilience plans and resilience testing.
failures
in Quilter's
preparation
for, or response
to, sudden
disruptions
could compromise
the maintenance
of important
business
services,
resulting
in the potential
for customer
detriment,
financial loss,
damage to
reputation or
regulatory
sanction.
--------------- ---------------- ----------------------------------------------------------------
Regulatory Risk owner 2021 risk trend Mitigation
Quilter is Chief Risk Reducing 2021 activity:
subject to Officer * Reduced exposure to international regulatory regimes
regulation through sale of Quilter International.
in the UK by the
PRA and
the FCA, and * Close engagement with regulators on regulatory
following developments including in respect of the FCA's
the sale of Consumer Duty proposals.
Quilter
International,
by a now reduced
number Planned and ongoing
of other activity:
regulators * Compliance monitoring programme.
internationally.
Additionally,
the firm * Regulatory engagement management.
is subject to
the privacy
regulations * Regulatory horizon scanning.
enforced by
the Information
Commissioner's * Staff training and staff awareness programmes.
Office and
international
equivalents. * Regulatory Compliance Policy, as associated policy
Quilter faces compliance arrangements.
risks associated
with compliance
with these
regulations
and to changes
in regulations
or regulatory
focus or
interpretation
in the markets
in which Quilter
operates.
Failure to
manage
regulatory
compliance
effectively
could result in
regulatory
censure,
including the
possibility of
fines or
prohibitions
which could
impact business
performance
and reputation.
--------------- ---------------- ----------------------------------------------------------------
Statement of Directors' responsibilities in respect of the
Annual Report and the financial statements
The Directors are responsible for preparing the Annual Report
and the Group and Parent Company financial statements in accordance
with applicable law and regulations.
Company law requires the Directors to prepare Group and Parent
Company financial statements for each financial year. Under that
law, the Directors have prepared the Group and Parent Company
financial statements in accordance with UK-adopted international
accounting standards. Additionally, the Financial Conduct
Authority's Disclosure Guidance and Transparency Rules require the
Directors to prepare the Group financial statements in accordance
with international financial reporting standards as adopted by the
United Kingdom.
Under company law, the Directors must not approve the financial
statements unless they are satisfied that they give a true and fair
view of the state of affairs of the Group and Parent Company and of
the profit or loss of the Group for that period. In preparing the
financial statements, the Directors are required to:
-- select suitable accounting policies and then apply them consistently;
-- state whether, for the Group and Company, applicable UK-adopted international accounting standards have been
followed, subject to any material departures disclosed and explained in the financial statements;
-- make judgements and estimates that are reasonable and prudent; and
-- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group
and Parent Company will continue in business.
The Directors are also responsible for safeguarding the assets
of the Group and Parent Company and hence for taking reasonable
steps for the prevention and detection of fraud and
irregularities.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Group's and the
Parent Company's transactions and disclose with reasonable accuracy
at any time the financial position of the Group and Parent Company
and enable them to ensure that the financial statements and the
Directors' Remuneration report comply with the Companies Act
2006.
The Directors are responsible for the maintenance and integrity
of the Parent Company's website. Legislation in the United Kingdom
governing the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
Responsibility statement of the Directors in respect of the
Annual Report and financial statements
We confirm that to the best of our knowledge:
-- the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and
fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings
included in the consolidation taken as a whole; and
-- the Strategic Report includes a fair review of the development and performance of the business and the position
of the issuer and the undertakings included in the consolidation taken as a whole, together with a description of
the principal risks and uncertainties that they face.
We consider that the Annual Report, taken as a whole, is fair,
balanced and understandable and provides the information necessary
for shareholders to assess the Group's position and performance,
business model and strategy.
Signed on behalf of the Board
Paul Feeney Mark Satchel
Chief Executive Officer Chief Financial Officer
9 March 2022
39: Related party transactions
In the normal course of business, the Group enters into
transactions with related parties. Loans to related parties are
conducted on an arm's length basis and are not material to the
Group's results. There were no transactions with related parties
during the current and prior year which had a material effect on
the results or financial position of the Group.
39(a): Transactions with key management personnel, remuneration
and other compensation
Key management personnel are those persons having authority and
responsibility for planning, directing and controlling the
activities of the Group, directly or indirectly, including any
director (whether executive or otherwise) of the Group. Details of
the compensation paid to the Board of Directors as well as their
shareholdings in the Company are disclosed in the Remuneration
report.
39(a)(i): Key management personnel compensation
31 December 31 December
2021 2020
GBP'000 GBP'000
------------------------------------------------- ------------ ------------
Salaries and other short-term employee benefits 7,627 5,503
Post-employment benefits 43 62
Share-based payments 2,987 5,263
Termination benefits - 51
------------------------------------------------- ------------ ------------
Total compensation of key management personnel 10,657 10,879
------------------------------------------------- ------------ ------------
39(a)(ii): Key management personnel transactions
Key management personnel and members of their close family have
undertaken transactions with the Group in the normal course of
business.
The Group's products are available to all employees of the Group
on preferential staff terms, the impact of which is immaterial to
the Group's financial statements. During the year ended 31 December
2021, key management personnel and their close family members
contributed GBP1 million to Group pensions and investments (in both
internal and external funds). The total value of investments in
Group pensions and investment products by key management personnel
serving at any point during the year and their close family members
was GBP12 million at the end of the year.
During the year ended 31 December 2020, key management personnel
and their close family members contributed GBP2 million and the
value of their investments in Group pensions and investment
products totalled GBP14 million.
Qualifying third-party indemnity provisions (as defined by
section 234 of the Companies Act 2006) were in force during the
course of the financial year ended 31 December 2021 for the benefit
of the then Directors and, at the date of this report, are in force
for the benefit of the Directors in relation to certain losses and
liabilities which they may incur (or have incurred) in connection
with their duties, powers and office. In addition, the Company
maintains Directors' and Officers' Liability Insurance which gives
appropriate cover for legal action brought against its
Directors.
39(b): Associates
In the current and prior year, IT services were provided by 360
Dot Net Limited, an associate company. The relevant transactions
had no material impact on the financial statements of the
Group.
39(c): Other related parties
Details of the Group's staff pension schemes are provided in
note 33. Transactions made between the Group and the Group's staff
pension schemes are made in the normal course of business.
- ends -
Enquiries:
Investor Relations:
John-Paul Crutchley +44 (0)7741 385 251
Keilah Codd +44 (0)7776 649 681
Company Secretary:
Patrick Gonsalves +44 (0)7391 867 081
----------------------
Press:
Tim Skelton-Smith +44 (0)7824 145 076
Camarco:
G eoffrey Pelham-Lane +44 (0)7733 124 226
----------------------
Registrars:
Shareholders on the UK Register:
Equiniti https://help.shareview.co.uk
Tel: +44 (0)333 207 5953* (calling from the UK)
Tel: +44 (0)121 415 0113 (calling from overseas)
*Lines are open Monday to Friday between 08:30 and 17:30 (UK time), excluding
public holidays
in England and Wales
--------------------------------------------------------------------------------
Shareholders on the South African Register:
JSE Investor Services (Pty) Limited Email: investorenquiries@jseinvestorservices.co.za
Tel: 086 140 0110/086 154 6566 (calling from South Africa)
Tel: +27 11 029 0251/+27 11 715 3000 (calling from overseas)
--------------------------------------------------------------------------------
About Quilter plc
Quilter plc is a leading wealth management business in the UK
and internationally, helping to create prosperity for the
generations of today and tomorrow.
Quilter plc oversees GBP111.8 billion in customer investments
(as at 31 December 2021).
It has an adviser and customer offering spanning: financial
advice, investment platforms, multi-asset investment solutions, and
discretionary fund management.
The business is being reorganized into two segments: Affluent
and High Net Worth.
Affluent encompasses the financial planning businesses, Quilter
Financial Planning, the Quilter Investment Platform and Quilter
Investors, the Multi-asset investment solutions business.
High Net Worth includes the discretionary fund management
business, Quilter Cheviot, together with Quilter Private Client
Advisers.
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