Nucleus rethinks ownership structure

Wrap platform Nucleus is planning changes to its adviser ownership structure to remove a link between the amount of assets an adviser adds to the platform and the value of their stake.

Advisers own roughly 51 per cent of Nucleus through an aggregated company, Nucleus IFA Company (NIFAC), but the company’s ownership methodology was suspended on December 31 as it did not comply with new adviser charging rules brought in under the RDR.

Chief executive David Ferguson said in future any stakes held by advisers would behave in the same way as those held by other investors, including Mr Ferguson himself, rather than increase in line with an adviser’s Nucleus-based assets.

Article continues after advert

Mr Ferguson added that the suspension of NIFAC’s methodology was not due to conflicts of interest, as the FCA and its predecessor, the FSA, have had no problems with advisers owning shares in platforms and other service providers.

He said he hoped to restore advisers’ ability to invest in the platform by the end of the year as there were “a large number of Nucleus users who have signed up to use the platform and who intend to become shareholders but have been unable to do so”.