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Nucleus to launch execution-only platform for IFAs
by Alex Steger on Nov 02, 2011 at 15:15
Wrap provider Nucleus is set to build a new version of its platform allowing advisers to offer an execution-only investment service.
Nucleus chief executive David Ferguson (pictured) said the execution-only space was set to grow, and the platform’s offering would enable advisers to branch out into the sector by allowing clients to transact through advisers’ websites. He said the platform would be a simplified version of its wrap, and would be unlikely to feature the onshore or offshore bond wrappers available on the advised platform.
He added Nucleus’s offering would not necessarily be aimed at clients that advisers could no longer profitably service. ‘Its not just for lower-net-worth clients, it’s just for clients who don’t necessarily want advice,’ he said.
Rival wrap provider Ascentric is also set to launch an execution-only platform for advisers to white label by March 2012. Ferguson added that Nucleus would not develop a corporate wrap proposition, arguing the sector did not offer sufficient margins. ‘We won’t make moves into the corporate market. It will become [based on] the same margins as in the group pensions market.’
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8 comments so far. Why not have your say?
Ric Green
Nov 02, 2011 at 15:27
Is that as opposed to the juicy fat margins in the wealth management platform market?
report thisjoey
Nov 02, 2011 at 15:42
Ric
if 0.35% is a fat margin, look at sjp 2.5% plus fire your bullets in the right direction and get educated.
report thisRic Green
Nov 02, 2011 at 15:50
@ Joey - sorry you didn't pick up on the sarcasm.
Also, 35bps isn't the margin that Nucleus exist on either. Happy to educate you on the the difference between income and operating margin.
report thisGraeme Ferguson
Nov 02, 2011 at 16:14
Net income expressed as a percentage of revenue. Also called net margin or net profit margin. Formula: Net income x 100 ÷ Total revenue.
Operating margin is a measurement of what proportion of a company's revenue is left over after paying for variable costs of production such as wages, raw materials, etc. A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt.
Though I have to say that I find Nucleus a very cost effective Wrap Platform whichever way you want to represent things!
report thisAndrew Watts
Nov 02, 2011 at 16:32
If there's a better, cheaper wrap I haven't seen it (when you take into account the non highlighted costs that is).
report thisDave
Nov 02, 2011 at 18:29
and of course you can take commission on execution only advice post rdr. There is probably a really good angle there.
report thisPhilip Wise
Nov 02, 2011 at 19:12
So, Nucleus (and a whole load of others) are launching a service to enable advisers to branch out into not advising (execution only). Have they been talking to Tevez?
report thisDavid Ferguson
Nov 03, 2011 at 11:47
Thanks for the kind words Graeme and Andrew. Most kind of you.
We're at a pretty early stage on this but delving into the conversations among many of our users it feels like a sensible extension of what we currently do.
Cheers
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