Nucleus has hit out at deals that see platform charges waived if clients invest in particular funds.
Speaking at The Platforum Annual Conference, Nucleus chief executive David Ferguson said such deals can be “incredibly damaging” and are “appalling behaviour”.
Ferguson says: “I think it is perfectly reasonable for a platform to have an in-house investment proposition. What troubles me is when there are artificial incentives there for people to invest into a multi-manager fund such as waiving platform fees, which is incredibly damaging.
“I think there are honey traps out there where the platform is given away for free because you go into a multi-manager fund with a TER [total expense ratio] of 2 or 3 per cent, which is just disgusting and is appalling behaviour and goes against the RDR.”