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Sesame chief Gale’s tied tirade

Sesame chief executive Patrick Gale claims multi-tied rivals, including Barclays and Openwork, run a quasi-tied model while Sesame’s Select offering allows advisers independence of thought.

Gale says Select advisers can go off panel and access the whole of the market while other companies restrict their advisers’ choice of provider and have effectively just tagged extra products on to their tied models.

He says the only difference between an IFA and the 1,000 advisers using Select is that Select advisers must remove the term “independent” from their marketing literature and initial disclosure documents.

Gale says: “We run a panel with the option to go off panel to the whole of the market if it suits a client’s particular situation. We are not like some of these traditional multi-ties, such as Barclays or Openwork.

“They are essentially tied models with a few extra products tagged on to expand their offering.”

He is keen to play down any concerns about Sesame’s ownership. He says parent group Misys is not selling the business but if its position changes, the firm would be attractive to suitors despite its potential liabilities, given its capital adequacy situation.

Gale says: “Why would anyone not be interested in Sesame? Of course, we are not core to the business as Misys is a technology firm but this is not an issue. We are not for sale. We might have a bigger risk on liability but with that risk comes bigger reward. We also have the capacityto handle that liability.”

He denies industry rumours that advisers are being encouraged down the dir-ectly authorised route, saying all its divisions – Select, Sesame network and Sesame Direct – are growing equally and Sesame is looking at wrap but is not ready to talk about it until it a deal is finalised.

Gale says: “We are not in the business of forcing advisers down one route or ano-ther. We are in the business of offering choice. All our business areas are growing, including AR numbers.”

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