Nucleus is refunding hundreds of customers after a series of trades went wrong following a technology upgrade, as experts warn similar problems may affect rival platforms.
In June the platform’s software provider Bravura upgraded Nucleus to its new system Sonata.
Nucleus says between June and September, “defects” in the system affected its trading.
It says “hundreds” of customers were affected, some of whom made gains and some of whom were disadvantaged.
Those who made gains have been allowed to keep them while those who lost out will be returned to the position they would have otherwise been in.
Nucleus refused to say exactly how many customers were affected and what the total compensation bill will be but said average compensation per customer is £40.
Nucleus business development manager Barry Neilson says: “We would expect a number of bugs and defects with any significant upgrade. We got on top of the situation quickly and made sure any disadvantaged clients were compensated.
“The majority of the affected trades occurred in the two weeks following the upgrade.”
A senior source at another major platform says: “This has been painful for Nucleus. Some teething problems are to be expected but it is concerning there were still problems three months on from the upgrade. There was disappointment internally it was not fixed by September.”
Aviva was due to go through the same upgrade in the second half of this year but says this has now been delayed. Ascentric is due to move to Bravura by the end of next year.
The Lang Cat principal Mark Polson says: “It would be a miracle if anyone went through an upgrade like this without losing some trades. Any adviser working with platforms going through these big upgrades needs to keep a close eye on it because things will go wrong.”
Neilson adds: “This is part of a wider platform issue as most providers need to upgrade their technology to ensure it is suitable for the significant market growth expected over the next five to 10 years.”