Old Mutual Wealth has dropped technology provider IFDS for FNZ on its plans to improve platform technology.
The IFDS Bluedoor project was expected to cost the company £450 million.
According to an update today Old Mutual Wealth has now replaced IFDS with FNZ.
The update said that of the expected £450 million cost of the IFDS project, Old Mutual Wealth has already spent £330 million.
The FNZ project is expected to cost between £120 million and £160 million.
Old Mutual Wealth expects the new system to be in place by the end of 2018 or the start of 2019.
Paul Feeney (pictured), chief executive of Old Mutual Wealth, said: '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. We have made tough decisions today but we believe they are the right decisions for our customers, their advisers, our business and our shareholders.'
The original IFDS project faced criticism from shareholders due to its rising costs and delays to completion date.
In October 2016 Old Mutual Wealth said it expected the total cost of the platform project to rise to £450 million. Today Old Mutual said the cost of staying with IFDS would be 'materially greater' than this estimate.
Old Mutual said it decided to partner with FNZ after looking at options in the UK platform market. FNZ currently provides technology to platform providers including Standard Life, Aviva and Zurich.
The decision does not affect plans to demerge Old Mutual and float Old Mutual Wealth separately on the UK stock exchange.