View more on these topics

Aviva and Friends pledge £45m to cover Sesame liabilities

Aviva-signage-building-2013-700.jpg

Aviva and Friends Life have pledged £45m in financial support for Sesame to cover potential liability and restructuring costs.

Aviva is offering £25m and Friends Life is offering £20m which can be called upon by Sesame over the next two years.

In March Sesame announced it will no longer operate as a network for investment advisers as part of a fundamental overhaul of the business.

Network members have until the end of this month to leave the network, become directly authorised as part of Bankhall, or move to network partner Intrinsic.

A spokesman for Aviva says: “As we have previously stated, we are supporting Sesame Bankhall Group in building a profitable, sustainable and attractive business in its chosen markets. We are therefore providing financial support that Sesame Bankhall Group can call upon in the event that it is required in the next two years as it continues to build its business in line with the strategy outlined at the end of March.

“The financial support may be used to pay any liability which Sesame or its subsidiaries believes it will be otherwise unable to pay using its own cash or other assets, costs associated with past business reviews and the costs associated with any future restructuring of Sesame and its subsidiaries”.

In January Aviva warned shareholders about the implications of taking on unknown liabilities relating to Sesame following the insurer’s takeover of Friends Life.

It said at the time the network was “reliant on the continued financial support” of Friends Life, and had unquantifiable “potential liabilities” arising from poor advice.

Recommended

Old Mutual Wealth 2014
3

Sesame confirms Intrinsic AR referral deal

Sesame Bankhall has confirmed it has chosen Instrinsic as its preferred partner for investment and pension appointed representatives who choose to leave the network following its closure. Last month, Money Marketing revealed that Sesame was planning the tie-up with the Old Mutual-owned network after it closed for business to investment advisers. Following the restructure of […]

Stephen Gazard SBG MD 700
7

Sesame to close financial adviser school

Sesame is to close its Financial Adviser School and is consulting with staff affected by its decision to scrap its investment advice network. In March, Sesame Bankhall Group announced it will no longer operate as a network for investment advisers as part of a fundamental overhaul of the business. In an update to members today, […]

Sesame building blocks.jpg
7

Close Sesame: What next for Sesame Bankhall members?

The UK’s largest advice network will soon be a network no more, at least as far as its investment members are concerned. After over two years of wrangling, of rumours of sales, management buyouts and plans to carve out its mortgage arm, Sesame Bankhall Group finally has an outline for its future. Following a shock […]

Tax avoidance (the fight goes on)

In recent times, we have witnessed high-profile celebrities and sports stars make the headlines for potential tax liabilities on ‘failed’ tax avoidance schemes. We are now used to reading about these individuals, but what about those who advise on such schemes? Read more

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment