Brewin Dolphin has agreed to pay £2 million ($3.32 million) in settlement over its decision to terminate the roll-out of a new IT system for its discretionary wealth business earlier this year.
Brewin Dolphin has agreed to pay £2 million ($3.32 million) in a settlement over its decision to terminate the roll-out of a new IT system for its discretionary wealth business earlier this year.
In May, Brewin decided to terminate the roll out of its new technology system, Figaro, across its discretionary wealth business after hitting snags in its execution-only arm.
Brewin said in a statement that it has concluded contractual obligations regarding potential future payments of £15 million over the next 10 years with JHC Systems - the maker of Figaro.
Brewin Dolphin will incur a one off £2 million exceptional charge in the second half of 2014, saving itself £13 million, the firm said.
The firm will take a pre-tax impairment cost of around £32 million in the second half of 2014 as a result of this decision, based on the consequent reassessment of the value in use of the software asset under development.
Brewin Dolphin reported a slight fall in total income of £73.1 million ($124.7 million) in the three months to 29 June this year from £73.3 million in the same quarterly period a year ago. The London-listed investment and wealth management firm said commissions fell 12 per cent year-on-year to £20.9 million, but fees rose 15 per cent to £46.1 million.
Brewin Dolphin recently announced a number of high-profile changes to its senior management structure.
IT chief Gareth Williams has left after 12 years with the company along with director of marketing, Philip Browne, who was with the firm for eight years.
Meanwhile, Thomas Lack has been appointed chief operating officer from Coutts, where he was head of wealth operations. He will report to chief executive David Nicol and will join the group’s executive committee.
Rob Burgeman and Peter Long have also stepped down from their joint head of London roles to concentrate fully on their clients and their teams of investment managers. They will remain members of the London Executive Committee.
Stephen Jones, formerly head of Brewin Dolphin Birmingham and latterly head of the Midlands region, has been appointed senior regional director and a member of the group executive committee, reporting directly to Stephen Ford, head of investment management and director of Brewin Dolphin Holdings.