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Intrinsic in advanced talks with Sesame over taking on ARs

Intrinsic is in advanced talks with Sesame over a deal that would see appointed representative advisers who choose not to join Bankhall referred to the Old Mutual-owned network, Money Marketing understands.

Earlier today, Sesame announced it will no longer operate as a network for investment advisers as part of a fundamental overhaul of the business. SBG will retain its mortgage arm, which will include the PMS mortgage club and a network for mortgage firms.

Under the new structure, AR members will have to choose between going directly authorised as part of Bankhall, or moving to a new “network partner”.

Sources close to the deal say Intrinsic is at the front of the queue to secure the deal, although it is not the sole party holding talks with Sesame. It is not yet clear what the commercial terms of the arrangement will be.

Openwork and St James’s Place say they are not in talks about partnering with Sesame.

Intrinsic could not be reached for comment. Sesame and Old Mutual declined to comment.

Sesame traces its roots back to software firm Misys, which sold the business to Friends Life in May 2007 for around £75m. Friends took on all liabilities as part of the deal.

In October 2009, Sesame acquired Bankhall and PMS from Old Mutual, creating a combined business of 3,000 appointed representatives and 1,500 directly authorised firms, as well as the UK’s biggest mortgage distributor.

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Comments

There are 11 comments at the moment, we would love to hear your opinion too.

  1. What happens if the FCA refuses to reauthorise them?

  2. Sorry, but I thought Intrinsic were already having massive commission payment delays??? …Maybe more ARs will improve the situation!?!

  3. Sesame traces its roots much further back than Misys. Countrywide, DBS, Kestrel etc were all around before Misys were involved.

  4. I do not understand what the attraction is, or what the benefit is to Intrinsic… is it just numbers game or bragging rights? Commercially knowing a little of the history why would anyone want to take on the liability and debt, especially when the advisers themselves (or the really productive ones) are likely to walk where their future can be more certain and of their choosing…

    Positive Solutions are an example that springs to mind… AEGON purchased it, tried to change it, brought in their own people. The business started to lose money, the Advisers found it more difficult to work within the constraints and the best ones left. As a result of changing what was a finely tuned engine with a treadmill PS went from profit to loss in several years and then AEGON sold PS for pennies in comparison to the £millions paid.

  5. @Derby IFA, yes Intrinsic does have payment problems, they are improving but they certainly haven’t swallowed taking on PS yet.

    @Victor M, yes it is a number games the guys at IFS want to say to their old buddies who now run SJP my team bigger then your team

    and IFS do need to take on a big group like this the boost the numbers back up from all those currently leaving them

  6. ARs that transfer across do not require authorisation. Intrinsic simply has to complete its own due diligence, keep the FCA informed under Principle 11 and register the new ARs. They don’t even have to take on the liabilities unless agreed with Sesame.

  7. The FCA can refuse to allow approved person status and does so on a regular basis.

  8. Yes…Must agree Victor M PS stated to loose ‘Millions’ So Mr ‘Bully Boy’ Reeve decided to attack its RI’s to claw back fees, which PS ‘alleged had been incorrectly credited going back over many years’ ! Yet; PS were/are fully responsible for regulatory systems & controls & ensuring all fees were/are correctly credited to it’s RI’s in the first instance !
    Malicious & Shambolic !!!!!!

  9. Intrinsic has been moving towards being the next Sesame for a long time now – proof that the “stack ’em high” model is still being replicated in the market. If I was one of the original Intrinsic advisers, I would be looking elsewhere, as I wouldn’t want to be on board when Intrinsic becomes the next Thinc, Millfield or Honister.

  10. Sorry Roger you are wrong on one key point IFS want to be the next SJP and don’t really want to be a network at all

  11. Network, national, DSF…….all the same, no difference in the relationship between the sponsoring firm and the adviser, it is all about Principal and Agent or Authorised Firm and Appointed Representative or Registered Individual. If the agent is involved in advice deemed to be unsuitable by a third party as part of a review ordered by the regulator he/she will struggle to be reauthorised.

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