Nucleus eyes ‘hybrid fee’ in pricing review

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Nucleus is eyeing a “hybrid fee” model to share costs between advisers and clients in a review of its pricing.

The platform is exploring how the firm would offer a hybrid pricing model, where both advisers and clients will pay a fee for the platform, with the latter paying a lesser amount.

Nucleus business development director Barry Neilson argues such models will become “more common” among platforms.

He says: “We are looking at a hybrid model carefully and how we would offer that and what that would mean for some of the firms that use Nucleus as an option.”

The platform is also looking to cut its fees next year, and while it has not decided by how much, Neilson says the firm will review its standard pricing models in the next two months with a view to changing them next year.

Currently Nucleus charges an annual 0.35 per cent on a tiered basis for assets up to £500,000, falling to 0.25 per cent when clients hold more than £1m and 0.15 on the balance thereafter.

Neilson says: “We are reviewing our pricing to ensure our clients benefit by way of fee reductions from the scale and sustainable profitability that Nucleus can now demonstrate whilst ensuring we can also continue to increase the sums we invest in our functionality and service.

“We are very sceptical about the ability of some of the platforms to sustain their pricing models and we are always trying to come up with a responsible pricing model to stay in the business in the next 10 years.”