Sesame Bankhall Group has today confirmed members will have six months to move to its restricted offering, become directly authorised under its Bankhall brand or leave the network altogether.
Speaking at the firm’s annual conference, managing director Stephen Gazard told delegates: “We have concluded that supporting non-mainstream investment areas, such as agricultural property investments, traded life policies and experienced investor schemes, is unsustainable for us. It carries too much risk and we firmly believe others will conclude the same in time.”
Sesame says it has analysed past business and found that only 32 cases out of 225,000 over the past 12 months would not have been possible under the new restricted propositions.
Sesame says it will not be “looking to drive you down a restricted panel of providers” but will restrict advice to mainstream investment products.
Gazard adds: “We need to be realistic. Higher risk products increase the likelihood of recompense, so why would we expose ourselves, you and the consumer to these areas?
“If offering non-mainstream investments is truly fundamental to your business then we sadly acknowledge that Sesame will no longer be an appropriate home for you.”
The firm says advisers that wish to move will have six months from today to decide what they want to do and that provisions have been made to transfer those that wish to become directly authorised into Bankhall.
The new restricted offering will be known as Sesame’s ‘Universal’ proposition and will sit alongside Bankhall’s DA advisers and its current restricted proposition. It means there will no longer be any Sesame-authorised advisers offering independent advice.
Sesame says its mortgage and protection advisers will not be affected.
In November Money Marketing revealed Sesame was to switch to a restricted proposition.
Earlier this month chief executive George Higginson left SBG as part of a reshuffle.
SBG has been up for sale by parent Friends Life for close to a year.
Earlier this week Sesame pulled a number of roadshows following concerns it would fall foul of FCA rules on inducements.