Quilter's previous £12m provision was related to approximately 30 British Steel complaints received in the first quarter of 2020. Today's results revealed the advice giant has received around 30 additional complaints, bringing the total number of complaints against Lighthouse to around 60.
The new larger redress provision has been extended to include all 266 British Steel transfers made by Lighthouse.
Quilter bought Lighthouse Group in June last year bringing an additional 390 advisers to the firm's growing adviser operation. However, an affinity deal between Lighthouse and the steelworkers' union resulted in hundreds of DB transfers, which are now being re-examined.
Lighthouse is currently facing an enforcement investigation, which arose from concerns identified during its ongoing work into DB transfer advice.
The Financial Conduct Authority (FCA) is currently investigating whether Lighthouse breached certain regulatory requirements in connection with advising on and arranging DB pension transfers between 1 April 2015 and 30 April 2019.
Elsewhere in the announcement of the company's Q2 results Quilter Investors' assets under management (AUM) declined by 4% in the six months to 30 June 2020, with net inflows down 25%.
The global financial services giant announced its latest financial results pointing to a "challenging environment", but saying that it has demonstrated operational resilience and cost discipline with a strong balance sheet driving shareholder returns.
Paul Feeney, pictured above, chief executive officer, Quilter, said: "In response to revenue challenges in the first half of 2020, we pulled hard on the cost lever, both through structural cost reduction via our optimisation programme.
"We are pleased to see the significant pick-up in net flows across the business in the first half, with gross flows remaining resilient despite the market turmoil and retention rates improving. This gives us confidence that we can deliver improving flows as the Platform migration project completes.
"That project is now in its final stages with c.80% of total UK platform assets expected to be migrated this year despite us adapting our plans to meet the logistical challenges presented by covid-19. Our priority is to ensure adviser readiness to deliver a smooth and safe migration for all our customers and advisers.
"Notwithstanding short-term uncertainties, Quilter remains well positioned in an industry with secular long-term growth prospects. The business is in good shape and we look forward to the future with confidence."
In his CEO statement Feeney added that Quilter's Financial Adviser School made the first unit of the Financial Adviser Diploma available on-line free to anyone who wanted to explore whether becoming a financial adviser was for them, and 300 people enrolled on the programme during lock-down.
"We have purposefully not undertaken any significant advice business acquisitions in 2020 as we focus on fully integrating those undertaken in 2019. During the course of the first half we recruited 106 Restricted Financial Planners, bringing our total to 1,808 net of departures. Limited net organic growth was a function of the external environment coupled with increased focus on individual adviser productivity which is an area of increasing importance to us and has led to some specific departures.
"Our pipeline of firms seeking to join our network remains strong. Our advisers have adapted well to remote working, engaging positively and proactively with clients via video and other means to deliver ongoing service and meet client need," Feeney added.
Top-up scheme for next six months