David Ferguson

James Hay CEO Richard Rowney will lead the combined group, which will have over £47 billion of assets under administration (AUA) – £28.3bn from James Hay and £18.9bn from Nucleus.

The Nucleus and James Hay platforms will “continue to operate independently for the foreseeable future while integration plans are developed”, the two companies said in a statement on Friday.

They added: “While this will be a complex exercise, the more immediate priorities are to ensure continuity of service and to deliver a roadmap of enhancements.

“Further details of the combined group’s development plans, including the future leadership structure will be announced in the coming months.”

Mr Rowney said: “We see this as a coming together of the very best parts of both businesses, building on our retirement expertise and their digital capability to develop a service that truly meets the needs of advisers and their customers.”

David Ferguson, founder of Nucleus, added: “Since 2006 we’ve always tried to do the right thing and put the customer centre stage. Actually meaning that has made us a little bit different from others in the sector but it also carried us to £19bn in AUA and led to this deal.

“We have full respect for the challenges ahead and are energised by the goal of working with our new colleagues to create the UK’s most respected and successful adviser platform.”