The decision to scrap its network for wealth firms and restructure its business comes in the wake of an ongoing strategic review to make the company better placed to respond to changes in financial services.
The Friend’s Life-owned company is currently in talks with other advisory firms interested in buying the network. A spokesman from SBG said Sesame advisers will have the choice to move to another part of the group or a “network partner” over the next few weeks and are not being asked to make a decision today.
The group is made up of three parts: Sesame, which is one of the UK’s largest appointed representative networks, Bankhall which offers a support service for directly regulated firms, and Professional Mortgage Services (PMS) which operates mortgage clubs for directly regulated mortgage brokers.
“Wealth firms currently in our network will be given time to become directly authorised through Bankhall,” said John Cowan, executive chairman of SBG. “Alternatively, as part of our commitment to offer choice, firms preferring to remain as appointed representatives will be able to move to a new network partner.
“We are in talks with another advisory group to help facilitate a smooth transition for those firms who would prefer this route.”
Complaints data
This announcement comes as the Financial Conduct Authority released its complaints data, which indicated Sesame’s complaints had fallen to 1025 between July and December last year. This is a drop of 421 incidences when compared to the first half of 2014 when the network was cited as the most complained about of all the advisory firms in the UK.
Decumulation, life and pensions were the firm’s most complained about area, citing 574 incidences in the second half of the year. General insurance and pure protection came second with 242 complaints.
Despite the sell-off, SBG said it will continue to operate its advisory network for mortgage firms, which represent around 25% of all UK intermediated mortgage lending.
“The SBG leadership team is well-placed to continue to deliver improvements to the business and further strengthen it for the future,” said Andy Briggs, chief executive of Friends Life.
“By building on the work already done to put the business on a strong footing, I am confident that these further initiatives will contribute to developing a successful, profitable and attractive business building on the established strengths in the mortgage business and Bankhall.”
