Aviva and Friends pledge £45m to cover Sesame liabilities


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.