The company said there were signs some clients were withdrawing savings, rather than topping them up, to keep up with soaring living costs.

Despite the fall the wealth manager and Financial Planner reported stable its AUM in its Q3 Trading update published today.

Assets under Management and Administration were broadly unchanged at £101.4bn at 30 September 2023, similar to end June (£101.7 billion).

The company said the figures reflected steadier markets, the usual summer seasonal slowdown in activity combined with moderately lower persistency levels in the IFA channel due to clients drawing down savings.

The company said it has seen improvements in several areas and a 20% year on year increase in IFA new business flowing onto its platform.

Quilter channel gross sales per Quilter adviser rose from £2.2m to £2.7m during the quarter.

Quilter CEO Steven Levin said: "I am pleased to have delivered steady AuMA in our seasonally slowest quarter in what remains a challenging market for new business.

“The Quilter channel continues to drive strong net flows in both our Affluent and High Net Worth segments. Quilter channel gross sales per Quilter Adviser remained at robust levels during the quarter and were over 20% higher than that achieved in the prior year comparative period. Notably, both gross and net flows from the Quilter channel in both segments were up on the comparative quarter a year ago despite overall market flows expected to have declined over the period.

"We continue to grow our share of new business from IFAs onto our platform, with the third quarter experiencing a 20% increase versus Q3 2022. We were delighted to have the strength of our competitive position recognised with our recent award for Best Large Platform as voted by advisers at the Schroders UK Platform Awards.

"Our open and unbundled business model positions us well from both a competitive and consumer duty perspective. I look forward to updating the market on the initiatives we are working on to improve Platform net flows and the progress we are making on our broader strategic plans at our Full-Year results in March 2024."