How is trail commission paid to the IFA?
Unlike the traditional concept of trail commission being paid from product costs, the transparency of the Nucleus model requires that trail commission is paid from the cash held in a clients portfolio. The total charge to a client consists of three elements: the Nucleus wrap charge; the cost of the assets that the adviser and the client choose to invest in; and the cost of financial advice, agreed in advance between the adviser and the client. As well as providing total transparency, this approach also gives IFAs and their clients complete freedom to determine the remuneration structure.
