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Misys plants giant Sesame seed in bid for network domination

Misys is relaunching its IFA business under the Sesame brand, hoping the move will open the door to successful flotation in July 2004.

All five of its networks – Countrywide, DBS,Financial Options, IFA Network and Kestrel – are being collapsed into one mega-network that will trade as Sesame. It will have 7,000 members split between 6,000 RIs and 1,000 directly-regulated advisers.

It will become the biggest IFA network in the UK on August 1 with 25 per cent market share. Its member firms, which number around 3,500, will receive a 10 per cent share of the price achieved at flotation.

Based on independent analysts&#39 £200m value for the firm achieved at flotation, firms would split £20m between them, receiving a cut of £5,700.

Fees for Sesame have been set at 10 per cent for firms with £100,000-£249,000 turnover, 7.5 per cent for £250,000-£499,000 and 6 per cent for £500,000 to £749,000. Firms with turnover above £750,000 will pay a negotiable fee.

Misys Life and Pensions chief executive Patrick Gale says: “We are going to dwarf competitors that have already floated and offer advisers 10 per cent of a valuable business, which will be cash in their pockets. Our members want to see us out there punching the IFA weight, which is exactly what we intend to do.”

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