Ferguson questions future of bps charging

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Nucleus chief executive David Ferguson has called into question the validity of platforms charging on a basis point scale.

During a Q&A session at the Personal Finance Society conference, Ferguson was asked by Platforum MD Holly Mackay whether bps were a fair way of charging advisers and their clients. "No one else in the world works on basis points," she said. "Why doesn't Nucleus go to a particular adviser firm, and putting some parameters around it, say what they are going to charge to support the firm in that business?" Ferguson replied: "It's a perfectly fair question. There are capital issues which are scale related, and you could end up with a really complex structure that would charge 5bps for the...

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