Old Mutual Wealth (OMW) has promised advisers more features and better functionality at less risk following its platform's switch from IFDS to FNZ.
The provider said the FNZ platform would offer advisers a "plethora" of other features and functions, such as access to ETFs, investment trusts, junior ISAs, and cash accounts.
Chief executive Paul Feeney (pictured) said: "[FNZ has] a much richer proposition for advisers and a far lower risk to delivery, at the same time our advisers still keep the advantages of all the other stuff that we provide - our customer service, our financial adviser support, our tools, our front end functionality, our wrappers, all remain. They keep all that and they get extra, quicker service and for lower risk."
OMW announced on Tuesday it had terminated its contract with platform technology provider International Financial Data Services (IFDS) and cancelled related work with DST Systems.
It instead took out a new contract with FNZ, which will now be responsible for delivering platforming and outsourcing services.
The provider said the contract with IFDS could have cost the firm £450m to fully implement the service, and at the end of April 2017, the costs had already mounted to approximately £330m.
Old Mutual estimated the costs of implementing the FNZ system to be between £120m and £160m.
The firm's management estimated the additional functionality provided by FNZ that was not included in the previous arrangements would have cost the provider a further £50m and taken another two years to deliver.
It said the decision would "considerably de-risk OMW's UK platform transformation programme" and it expects FNZ's system to be in place by late 2018 or early 2019 - roughly the same time as the delayed platform upgrades with IFDS were due.
Feeney added: "Given the cost, effort and time already invested in the programme, we have not taken these decisions lightly.
"This has been a difficult journey for customers, their advisers, our business and our shareholders."
The lang cat founder and boss Mark Polson said OMW's change from IFDS to FNZ was probably the "biggest strategic shift we've seen in the under-the-bonnet side of platforms.
"As is well known, the sums involved are eye-watering - we reckon, based on OMW's own cost predictions, the replatforming cost so far for each customer is in the region of £800; with 400,000 customers that's a hefty bill."
He added: "Today is a very bad day to be IFDS and a very good day to be FNZ. The question really is - what kind of day is it at OMW? In one sense, decisive action is good and there is no reason that FNZ can't deliver a coherent proposition which addresses the key gaps in OMW's functionality. In another, you have to ask how things could get this far down the line before the hard decision was made."
The firm said it expects to provide further updates in the autumn.
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