nucleus is attracting advisers with promise of shares in wrap backed by sanlam insurance group
Adviser group Nucleus is looking for advisers to back a new wrap proposition for investors.
The wrap platform will be an open architecture structure. It will give investors access to offshore portfolio bonds, funds, tax wrappers as well as technical and legal advice. Full details of all providers on the scheme are yet to be announced as well as charges for investors.
Nucleus is to be owned 51% by advisory companies and already has the backing of seven groups. However, the company has outlined strategic plans to attract an additional 40 firms in the next five years. The management team behind Nucleus is David Ferguson, chief executive and Philip Martin, business development director. The pair established product design and marketing consultancy The Abacus together in 1999.
Ferguson said: "We decided to make this venture majority owned by advisers to give them a greater share of the business and ultimately more control. By subscribing for shares in the company it also gives them more potential to benefit from any upside gains on market price.
"The capital investment advisers make in the business will depend on the amount of revenue they hope to gain from the platform. They will never have more than 51% ownership. As more groups join the proposition, the amount of money they contribute will reduce accordingly."
Bruce Wilson, managing director of Helm Godfrey, said advisers would be attracted to the platform because it offered greater client responsibility. He said: "We will be responsible for not only financial advice but for service delivery of products. It will make us less reliant on traditional life companies."
Other partners include South African-based insurance group Sanlam and its UK subsidiary Merchant Investors. Details have not been released on whether products from these groups will be included.
Central Investment Services
Avidus Wealth Management
Howard & Co
Asset Management IFA
Staying invested could prove lucrative
Consider lasting powers of attorney
Less environment, more governance threatens to undermine firms' green credentials
Evidence your compliance