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Sesame identifies six distribution models

Network claims depolarisation has created uncertainty around distribution

Depolarisation has created six distribution models and profoundly altered the industry landscape, says Sesame.

Head of strategic propositions and commercial development Alastair Conway says distribution channels are not as straightforward as tied, multi-tied or independent financial advisers.

He says advisers fit into six camps – product tied, provider tied, multi-tied, transparent panel, informal panel and whole of market.

Conway says the product tied, provider tied and multi-tied models represent the interests of the provider while transparent panels and informal panels cater more for the needs of the consumer.

Sesame has developed a table around the evolution of product choice to illustrate how depolarisation has affected the industry. Conway says the table shows a sliding scale from open to closed product propositions, where the nature of the panel negotiations do not need to be divulged to the consumer.

Conway says: “The regulated market has suffered as a result of the uncertainty around depolarisation.

“We believe it is of great importance to better understand the nuances of the various models in order to best serve clients.”

Sesame says it has been briefing the Law Society on depolarisation after the society announced last year that it was considering plans to establish professional introducer relationships with whole-of-market and multi-tied advisers rather than just independent financial advisers.

The network says the society needs to recognise the changing shape of the industry to remain competitive.

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