Are IFAs using Nucleus platform "independent"?

ScaryJeff

Hi all,

I contacted an IFA a couple of years ago for advice on investing ~£120k.

He advised putting my money into the funds on the Nucleus platform (in ISA-wrapped accounts where appropriate).

I believe that Nucleus offer a range of Morningstar portfolios according to one's risk/reward preferences, and they switch my investments in/out quarterly based on the changes to the portfolio contents. They charge a platform fee of course (can't remember what it is).

But - my question is: given that the whole Nucleus system is owned by IFAs, how can my IFA be truly "independent"? I go there for advice, and (surprise!) they advise putting my money under the Nucleus platform that they own. Is this really "independent" or a simple vested interest? Are there better choices around, bearing in mind I don't have the expertise to juggle my investments myself...?

Any seasoned investors got an opinion on this?

Many thanks!

dunstonh

But - my question is: given that the whole Nucleus system is owned by IFAs, how can my IFA be truly "independent"?

IFAs can use any platform. Nucleus is a whole of market platform. It is not owned by any one adviser. It is more of a co-operative. There is a lot to be said for that method too. It means the IFAs and FAs (as an awful lot of advisers using Nucleus are not IFAs) get a greater input in how the software works. Most platforms are built by non-advisers by IT departments that don't necessarily know what advisers want.

All IFAs have to complete a platform due diligence every year (or more frequent) and the FCA allows the filtering out of platforms at the company level as long as it does not restrict in any way. For example, an IFA couldn't say they will only use a fund supermarket as that would be a clear restriction. In reality, most IFAs will have 2-5 platforms. (perhaps 2 that they use for new business and another load for existing clients). The platform use will likely change over time. Hence why platform due diligence is ongoing.

IFAs have to review provider mix and if there was an unexplainable bias towards one provider then it could lead to action. Indeed, over the last few years, a number of IFAs were told to become restricted because they were too heavy on one platform.

Nucleus targets firms which are multi-adviser, directly authorised and intend to use them as their core platform and have a certain amount to put on platform. Standard Life Wrap is another that does that. It is ideal for larger multi-adviser firms who are looking to have in place systems and controls on their advisers.

As Nucleus is a whole of market platform and its charges are reasonable, there is absolutely no problem should you require a platform for your business.

For the record, I do not use Nucleus.

capital0ne

dunstonh wrote: »

IFAs can use any platform. Nucleus is a whole of market platform. It is not owned by any one adviser. It is more of a co-operative. There is a lot to be said for that method to. It means the IFAs and FAs (as an awful lot of advisers using Nucleus are not IFAs) get a greater input in how the software works. Most platforms are built by non-advisers by IT departments that don't necessarily know what advisers want.

For the record, I do not use Nucleus.

Could you say why you don't use Nucleus, and what do you use please?