View more on these topics

Friends happy to take on Sesame liabilities

Friends Provident says it is not concerned about Sesame’s future liabilities despite the uncertainty over the figure reported by the network last summer.

In Sesame’s last full accounts for the year ending May 31, 2006, it projected its existing and future endowment complaint liabilities at 19.8m, up from 10.6m in 2005. But the firm admitted there is uncertainty over the figure due to a lack of records of policies sold.

However, Friends Provident marketing and UK distribution managing director Simon Clamp says: “Sesame has had a number of issues with regulatory reviews in the past, as has every other IFA firm. It is a market issue, not a Sesame issue. There have been recent reviews by the FSA and a number of these have been completed now. We would take on any responsibility for future liabilities.”

Tenet Group finance director Peter Laing says the fact that Tenet did not have to take on BIA’s liabilities when it acquired the firm was key to the deal being completed.

He says : “Doing deals like this can be extremely difficult, particularly when trying to quantify their calculations for potential compensation payments and with the problems Sesame noted in its last set of accounts. With BIA, we were able to not take these liabilities, which was a blessing.”

Burns-Anderson chief executive Mike Hughes says Friends has little choice in meeting Sesame’s liabilities.

He says: “The reputational damage that would have been caused if they forced the liability on to the Financial Services Compensation Scheme would have been immense.”


Pension gurus come together in Nice

This week the pensions industry glitterati descended on Nice for the first Money Marketing Retirement Summit. Attendance at the Cannes Film Festival, just 20 minutes down the road, plummeted as screaming fans bundled into Nice to catch a glimpse of their favourite pensions guru.

IFA banned for leaving clients without cover

The FSA has banned Powell Price director Nigel Layton after finding him guilty of failing to pass on premiums to insurers and leaving clients uninsured.It says: “Layton knowingly and deliberately accepted clients’ insurance premiums which he failed to pass over to the relevant insurers and intermediaries, leaving at least 16 clients uninsured.”The FSA says Layton […]

Hips delayed until August 1

The Government has delayed the implementation of Home Information Packs until August 1. The decision was made following an interim order preventing Energy Performance Certificates from being included in Hips from June 1.

Clash over conflict of interest in wrap shares

Advisers do not run the risk of conflicts of interest by receiving shares in a wrap, according to Helm Godfrey managing director Bruce Wilson.At the MM retirement planning summit in Nice, Wilson said he chose to use the independent Nucleus wrap rather than a provider-sponsored offering because there are no guarantees that a provider-led wrap […]

European Opportunities: 'It’s nice when stock selection results in a macro tailwind'

Amid significant macro headwinds in August, Mark Page explains why his fund’s focus on stock selection has helped it outperform a falling market in August. BESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswyBESbswy


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm