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Old Mutual Wealth updates on platform transformation

02 May 2017 09:20

Old Mutual Wealth has contracted with FNZ to deliver platform and outsourcing services.

It added that it had terminated its contract with IFDS for the "Bluedoor" back-end investment administration platform and associated business process outsourcing and the related work with DST on the "Opendoor" front-end solution.

"These decisions considerably de-risk OMW's UK Platform Transformation programme," it said in a statement.

"We expect an enhanced customer and adviser proposition supplied by FNZ to be operational for new business by late 2018/early 2019 with migration to follow swiftly thereafter."

OMW guided the market in October 2016 that the costs of implementing the platform systems with IFDS/DST could be up to £450m.

At end-April 2017, UK Platform Transformation costs of about £330m had been incurred, of which £110m was in relation to the Heritage business. The end April total is stated net of a £30m receivable from its previous supplier.

"Preliminary cost estimates for the operational delivery of the FNZ system are of the order of £120m-£160m," said OMW in statement.

"This preliminary estimate is supported by our contract with FNZ, but this plan will be confirmed through our joint planning and configuration phases. The new platform is expected to provide additional functionality that was not included in the previous arrangements.

"Management estimate this would have cost in excess of a further £50 million and taken a further two years post migration to deliver."

At 9:20am: (LON:OML) Old Mutual Group PLC share price was +1.65p at 195.65p

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