Nucleus to roll out execution-only wrap in Q3

Nucleus is launching a white label, execution-only platform in Q3 which will help advisers build and market a direct wrap proposition for clients.

The execution-only wrap will offer an ISA, SIPP and general investment account (GIA) wrapper with a range of unit trusts, OEICs, equities, ETFs and potentially structured products.

Investors will be able to invest in, and switch, products and run performance reports. Real-time equity trading will be available later in the year.

Advisers will determine the make-up and branding of the direct to consumer platform and will also be able to restrict certain investment choices.

"It is about us providing the infrastructure for IFAs to build and market their own direct propositions," said business development director Barry Neilson.

"It's like an iceberg - we produce it beneath the water which nobody will see but how adviser firms integrate and market the wrap is entirely up to them."

The execution-only offering, financed through the wrap's ongoing development budget, is designed to help existing Nucleus member firms service ‘orphan' clients in the post-RDR world.

It could also be used by advisers operating a simplified advice proposition.

"We are seeing a move away from traditional face-to-face advice," added Neilson. "There will be a lot of face-to-face advice costs that IFAs simply cannot afford to bear."

IFA-owned wrap Nucleus has £3.5bn of assets under management and 105 member firms.

Its plans in the execution-only space come hot-on-the-heels of both Ascentric and Elevate unveiling direct to consumer propositions.