Nucleus has reduced the standard annual charge on its Wrap platform by three basis points for holdings between £200,000 and £500,000.
The rate cut, which was effective from December 1, is the second time the platform provider has cut charges in the past 18 months, and is designed to help increase Nucleus's competitiveness.
Nucleus said its commitment to "investing in price" has already saved the group’s customers more than £5mn in the past two years, with a further £5mn expected to be saved in 2024 through the combined price reductions.
Mike Regan, chief financial officer at Nucleus, said: “We’ve been clear that as we build scale this allows us to invest more in our service, product and price.
“I’m pleased that we are now sharing the benefit of our increased scale by introducing our second annual rate cut for Nucleus Wrap.
“This latest price reduction increases our competitiveness, and more importantly, delivers an improved outcome for many of our customers, who collectively will have saved more than £10mn by the end of next year.”
The firm said the cut will deliver an average 3.2 per cent reduction for eligible customers.
Under the new standard pricing structure, a customer with assets of £500,000 would see their charge reduced by £450 over five years.
Nucleus Wrap customer standard charging structure
Previous charges | New charges | ||
Tier | Standard charge | Tier | Standard charge |
£0 to £0.5m | 33bps | £0 to £0.2mn | 33bps |
|
| £0.2mn to £0.5mn | 30bps |
£0.5m to £1.0m | 17.5bps | £0.5mn to £1.0mn | 17.5bps |
£1.0m+ | 5bps | £1.0mn+ | 5bps |
Regan added: “Over the past 18 months we’ve invested more than £20m in our proposition, service and price as we deliver against the priorities of advisers, helping them to make their clients’ retirement more rewarding.”
sonia.rach@ft.com
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