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Sesame freezes fixed fees in annual price review

Sesame has moved to freeze its fixed member charges at £50 a week following its annual price review.

In a note sent to member firms today, Sesame told advisers that it is “acutely aware of the challenges our members face in this tough operating environment, which is why we have worked hard to retain our fixed fees at the same level this year.”

However, an increase in the minimum income requirement, made up of both fixed and variable fees, from £6,000 a year per firm to £7,500 for the first adviser and £2,500 for each additional adviser will also come into effect, increasing charges for around 4 per cent of its 2,200 members.

Sesame says firms with less than £36,000 in annual turnover will be caught by the new threshold.

Minimum retention requirements will not change for mortgage and protection advisers.

Sesame announced last year that it would be moving to a restricted proposition. All members were given the option to move to its restricted offering, leave the network or become directly authorised under its Bankhall support arm.  

Last year it upped fixed fees in January, citing its investment in software for the hike in costs. 

Standard Member Firm Fee

Current fixed charge

Charge from 1 Aug 2014

£59.50 (inc VAT) per week

£59.50 (inc VAT) per week

Net

VAT

Total

Net

VAT

Total

£49.58

£9.92

£59.50

£49.58

£9.92

£59.50

 
Standard Retention

Annual Turnover

Current rate

Rate from 1 Aug 2014

< £69,999

14.0%

14.0%

£70,000 – £99,999

13.05%

13.05%

£100,000 – £149,999

11.0%

11.0%

£150,000 – £249,999

10.5%

10.5%

£250,000 – £499,999

8.5%

8.5%

£500,000 – £999,999

7.0%

7.0%

£1,000,000 +

6.5%

6.5%

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Well proof positive that those prepared to pay these sums must be puddled (or idle – or both).
    Most ordinary sole traders will be paying sums approaching £15k p.a. For what? As a DA sole trader it costs me a fraction of that and I don’t have a spotty youth telling me what is and isn’t compliant. I don’t have to answer to a higher authority and I’m truly independent.

    Just think if you have investments under advice and charge (say) 0.5% trail. That means that the first £3 million goes to the network. What a monkey to have on your back!

    Sure I have to do a bit more work, but at least I’m working for my benefit – not for some Life Office who owns a network and who will ditch or lumber me or make me restricted at the first sign of a problem. Nor do I have issues with client retention or ownership.

    I can only assume that those in a network must have some particularly odd skeletons in their cupboard.

  2. the elephant in the room 28th May 2014 at 7:00 pm

    This reads more like a recruitment campaign than a newsworthy article.

    Still, it might make some of the other networks sharpen their pencil – and some of them seriously need to!

  3. good day for golf 29th May 2014 at 10:17 am

    Agree with Harry on this one
    Compliance management was shocking but they had all power and I mean all power
    If they said black was white and they did frequently there was nothing you could do about it
    Reminds me to send them an email- I do it once every few years to see if they have had any more claims chasers they failed to defend my open account against
    A sorry state of affairs really

  4. In times when everything seems to be going up in price, love them or hate them, lets give Sesame some credit for not increasing fixed or variable fees. And remember, been directly authorised is perfect for some businesses but absolutely the wrong move for others – you will find un/happy business owners on both sides of the fence.

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