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Nucleus cash for admin error

Nucleus misreported the holdings of up to 106 clients following admin errors which may cost the platform £150,000.

The errors occurred in 2007 and 2008 but were not discovered until last year.

An investigation, which finished last week, concluded that up to 106 of Nucleus’ 25,000 clients had their holdings misreported.

No clients lost any assets but a number were given extra assets due to the errors. In the major-ity of cases, clients will be able to keep the extra funds, resulting in the loss to the firm.

Chief executive David Ferguson says the cost to correct the errors is currently £100,000 to £150,000. He says: “The cost will be considerably less than the amount we made provision for. We are in rectification mode.”

In April, Nucleus announced losses of £3.3m in 2010 compared with losses of £3.2 in 200 but Ferguson says he expects the firm to meet its target of breaking even this year.

CWC Research senior partner Clive Waller says: “It is one thing to make a mistake, it is another to learn from it and make sure it does not happen again.”


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