Paradigm becomes Nucleus shareholder after extending white-label deal

IFAs in network and support services provider Paradigm will become shareholders in adviser-owned wrap Nucleus, after the two firms extended their white-label relationship for another five years.

Paradigm has also announced a partnership deal with AXA Elevate in addition to its relationship with SEI which has been contracted to build its corporate platform set to launch in December.

In a letter to Nucleus shareholders, John Moore, chairman of the Nucleus IFA Advisory Board, said one benefit of the new deal was that Paradigm assets would now be factored into the value of the platform.

‘Nucleus has agreed terms on which to extend our partnership with Paradigm for five more years. the arrangement will result in Paradigm and the Paradigm IFAs becoming shareholders in Nucleus IFA Company in due course, and I am particularly pleased to advise that the terms ensure Paradigm-related assets will be value accretive for core Nucleus shareholding firms.’

Paradigm was previously not a shareholder in the Nucleus despite having an agreement to white-label the wrap under the name Paradigm Wrap, which accounts for around £900 million of the £3 billion assets under administration on Nucleus.

David Ferguson (pictured), chief executive of Nucleus, said he welcomed the deal.

‘Paul Hogarth [Paradigm's chief executive] and his team have been friends of Nucleus since our early days and we share a very positive vision for a post-RDR world,’ he said.

‘I hugely welcome Paradigm's deeper commitment to Nucleus and everyone at Nucleus looks forward to working with the Paradigm team to create better client solutions and give advisers even more control over their businesses.’

Hogarth said the decision to partner with AXA Elevate was made after advisers had requested the option of a product provider-backed platform.

'We’ve listened to feedback from a number of firms who have expressed a need for a product provider platform. The benefits of offering flexible charging structures and platform-to-platform re-registration are a huge attraction to our advisers.'

David Thompson, AXA Wealth's managing director of UK distributors, said: 'The partnership with Paradigm is a significant development in the evolution of the AXA Wealth business. It demonstrates that Elevate is building key partnerships with major third parties.'