The firm’s literature says advisers can take initial commission of between 0 per cent and 10 per cent in 0.01 per cent increments on all of the client assets on the platform.
But head of wrap Nick Burton has defended the move, adding that advisers are responsible enough not to fleece the system.
He says: “The FSA makes it reasonably clear that a provider’s role is not necessarily to police the level of fees agreed between advisers and customers, that is a matter for them.
“Any responsible provider would be expected to manage that process at the extremes. But as a principle it is not the role of a provider to be a party to an agreement between an adviser and a customer.
Burton adds that the most common initial commission on our platform is 0 per cent.
He says: “If advisers move clients on to our wrap platform they may have already given advice and taken fees and therefore the most common commission we have is 0 per cent.
“I do not think advisers are irresponsible. I think they are responsible. What we are doing is giving them the flexibility to structure an agreement around fees with customers in a flexible way.”