Old Mutual’s UK unit Old Mutual Wealth (OMW) has switched IT providers, the group announced on Tuesday morning. OMW said it cancelled a £450m project awarded to Kansas City-based DST Systems and its subsidiary, International Financial Data Services (IFDS). Of this contract, £330m in costs had been incurred before the decision to terminate it. New Zealand-based fintech company FNZ has been appointed to implement a replacement IT system which has a preliminary estimated cost of between £120m and £160m. "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 all stakeholders," OMW CEO Paul Feeney said in Tuesday’s statement.

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