Sesame is offering its appointed representatives incentives to become directly authorised as part of Bankhall or move to a new “network partner” after announcing it will close its investment network.
Last week Sesame Bankhall Group announced it will no longer operate as a network for investment advisers.
ARs will have to go directly authorised as part of Bankhall, move to a new network partner or leave altogether. The identity of the network partner, believed to be Intrinsic, is expected to be announced before the end of April.
In a letter to members this week, seen by Money Marketing, Sesame says ARs will be given three months’ contractual notice on 30 April to make a decision.
On 31 July, those transitioning to Bankhall will be able to continue to trade until their FCA permissions are granted, and those joining the network partner will be moved across.
All other ARs will leave the Sesame network on this date.
For those who move to Bankhall or the network partner, Sesame says it is likely to offer benefits including paying Financial Services Compensation Scheme interim levies, and not freezing commission accounts.
It will also give firms up to six months to return client files and offer pro-rata FCA fees so firms are not double charged.
In the letter, Sesame Bankhall Group managing director Stephen Gazard says: “Obviously in the event that you do choose to become directly authorised through Bankhall, or move to our AR wealth specialist partner, then that naturally means we can do more to help smooth the transition for you.
“Whatever you decide we will do all we can to help, although I do feel it is important to point out that whilst we appreciate there are other options available to you, it is simply not feasible for us to provide you with the same level of support on the same terms as we are able to deliver through our preferred routes.”