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Sesame freezes fixed member fees at £50 a week but ups minimum requirement

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

In a note sent to member firms last week, 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”.

The freeze means the fixed weekly charges for members remains at £49.58 before VAT. Sesame members also pay variable fees based on turnover. Although fixed fees are staying the same, total minimum fees are increasing from £6,000 a year per firm to £7,500 for the first adviser and £2,500 for each additional adviser, 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 fee levels will not change for mortgage and protection advisers. 

Variable fees start at 14 per cent of turnover up to £69,999, tiered down to 6.5 per cent on turnover over £1m. It remains unchanged, aside from the changes to the minimum requirement.

Derbyshire Booth managing director Greg Heath says: “To me, the fees still seem too high. Although a price freeze is always welcome, 14 per cent of turnover for the variable amount seems like a lot.

“In my view, fixed fees are always better. As Tenet members, we have negotiated a fixed fee and that makes it easier to budget as we know exactly what is going to be coming out.” 

Sesame upped its fees in May last year, citing its investment in software for the hike in costs.

It 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. 

Sesame

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