The adviser-owned wrap platform Nucleus is set to go live before Christmas.
Nucleus expects the seven initial adviser firms signed up to migrate around 70 per cent of their existing assets under management onto the platform over the next one to two years.
Although the seven groups – Central Investment Services, Helm Godfrey, Scott Lang, Asset Management IFA, Avidus, HKA and Howard & Co – which are taking a combined stake of 51 per cent in the business, have around 3.5bn in combined assets, Nucleus chief executive David Ferguson says, realistically, all this money will not move over to the platform. This is because of difficulties advisers will have moving over clients with offshore bonds with big gains or pensions with guaranteed annuity rates.
Ferguson says some firms are also unlikely to move over some of their less active or less affluent clients. He says: “Our aspiration is that the companies will move up to 70 per cent of client assets over. There was a lot of consolidation around A-Day so most pensions are okay now unless you have got guaranteed annuity rates.”