Clients of the adviser wrap platform with portfolios worth £500,000 (€565,771, 642,670) or more will see significant reductions in the fee they pay from 1 July onwards.
The current 25 basis points charge for portfolios between £500,000 and £999,999 will be cut to 17.5bps and the 15bps charge for portfolios of £1m and above will drop to 5bps this weekend.
The change affects current Nucleus customers as well as new business to the £12.2bn platform.
Barry Neilson, business development director at Nucleus, said it could cut costs to clients after a successful 2016 and “brilliant” start to 2017.
“As an adviser led business we listen carefully to the feedback from our users and they were clear they wanted a more competitive structure for larger portfolios and it’s great we’re in a position financially to be able to deliver this.
“This has been possible as a result of strong and sustained growth in the assets, revenue and profitability of the business in recent years and our growing scale ensures our users can benefit and be a part of this success.”
Nucleus claimed the change would mean portfolios of £1m will see annual platform costs fall 12.5% and a £2m portfolio will see costs fall 30.5%.
Pressure on fees
Nucleus’s price cut comes amid an increasingly downward pressure on fees which also seen the likes of Aegon and Transact make a similar move.
Earlier this week, the UK’s Financial Conduct Authority (FCA) announced it will probe how the investment platform market is functioning over fears there is a lack of competition between providers.
