Brewin settles abandoned tech deal for £2m

Brewin Dolphin will pay £2m to settle the contract for the discretionary IT system roll-out it abandoned earlier this year.

The wealth manager says it has finalised the negotiations with JHC Systems, the company that created Figaro, an operating system, over how much is owed of the £15m contract. It will hand over £2m in the second half of this year as full settlement. 

Figaro is used for Brewin’s execution-only service Stocktrade, but after a review it found the system would not work for its discretionary business, a large part of the deal.

Brewin reported a £32m writedown in May as a consequence of the failed roll-out. It will be recorded in the second half of the year.

The firm is working to upgrade its existing systems, an avenue which it believes will be cheaper than paying for Figaro with much less risk.