Losses at Quilter-owned advice network Intrinsic have increased again.
The business has reported an operating loss of £15.1m in the year ended 31 December 2017, an increase on the £8.9m loss it made the previous year.
According to accounts filed to Companies House, the increased loss at Intrinsic Financial Services was due to growing its subsidiaries through acquisitions and adviser recruitment, as well as “investment in infrastructure”.
The total number of advisers at the end of 2017 was 3,567, of which 1,561 are restricted. In 2016 there were 3,307 advisers.
Administrative expenses came in at £92.4m compared to £66.4m in 2016.
In a separate Companies House filing, Intrinsic Wealth, which is a subsidiary of Intrinsic Financial Services reported a 10 per cent drop in overall headcount to 264, of which 177 are financial planners.
According to the accounts, Intrinsic Wealth is aligned to the wealth network part of the Intrinsic business.
A Quilter spokesman confirms that across the Intrinsic network total adviser headcount increased by around 8 per cent in 2017.
The spokesman says: “Among some subsidiaries, adviser numbers have decreased, largely due to the decision some advisers have made to move to a restricted business model within Intrinsic.”
Intrinsic Wealth also paid £900,000 relating to a long-term incentive plan for advisers.
The spokesman says: “Incentives are specifically structured to encourage adviser productivity and advice quality. They are overseen by the Quilter executive risk committee and the customer forum.”
He adds: “The long-term incentive plan encourages advisers to grow their business and promote good customer outcomes. Advisers that qualify for the programme do so based on advice quality and productivity alone.”