View more on these topics

Ex-member claims that Sesame&#39s bad timing cost it £15k

A former Sesame member says incorrect advice from the network is costing it £10,000 in unnecessary FSA fees.

Burton Investment Services says it wound down its practice in March 2004 rather than December 2003 after advice from a Sesame senior account manager which told them that was when the FSA&#39s charging year would end.

But it has since been sent a £10,000 bill for FSA registration charges for 2004 and has now found out it should have wound up the business before December 31 to avoid this year&#39s regulatory charges.

The firm, which had seven advisers last year, says the soaring cost of professional indemnity insurance and other regulatory costs have forced it to close its doors after 14 years in business with no claims against it.

Sesame says while it is conducting an investigation into exactly what happened in this case, it did address this issue in a circular sent out on November 18, 2003 while dealing with a number of other issues. The circular said members needed to leave by the end of 2003 to avoid 2004 FSA charges.

BIS principal Philip Carter says: “We have been given the wrong information and it has cost us £10,000. If we did that to the general public we would have been forced to pay up.”

Sesame spokesman Richard Wheat says: “We were aware that there was an issue surrounding the timing of the charges because of member feedback and this was why it was addressed in the circular.”


VAT bombshell for network members

IFA networks could face crippling tax bills if a ruling forcing small networks to charge members VAT on fees is extended across the financial services industry. Companies could be facing VAT bills adding up to several thousand pounds and there are fears that the policy change could be applied up to three years retrospectively. In […]

Scottish Life International – Safe Combination Bond

Type: Capital-protected offshore bond Aim: Growth by investing in Scottish Life International&#39s Protected UK Index 100 and Protected UK Index 95 funds Minimum investment: Lump sum £15,000 Term: None Investment split: 100% linked to the performance of Scottish Life International&#39s Protected UK Index 100 and Protected UK Index 95 funds Return: Depends on quarterly growth […]

New secure structured product from SLI

Scottish Life International is launching a structured product that invests in a combination of tax-efficient insurance funds which provide between 100% and 95% capital protection every three months. A profit rate is calculated at the beginning of each quarter, indicating the proportion of any growth in the UK FTSE 100 stock market from which the […]

NU in the middle for life strength

The FSA&#39s new realistic reporting regime shows that Norwich Union&#39s average risk capital margin coverage for its with-profits business is 2.63 – around the middle of life office figures. Norwich Union says that under the new rules it has total assets of £4.3bn in excess of its liabilities across its CGNU Life, Culac and NUL&P […]

2016 Global Survey of Individual Investors: How is investor behaviour rewriting the job description for financial professionals?

Trapped between expectations for near double-digit returns and strong apprehensions about investing in persistently volatile markets, investors worldwide are of the opinion that professional financial advice is worth the fee. But even though they believe individuals who work with a financial professional are more likely to achieve their goals, investors have a clear vision of […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment