Sesame Bankhall Group has set aside £31m for customer redress following a review by parent company Friends Life.
Friends revealed the complaints provision in its half-year accounts this morning and added there is “considerable uncertainty” surrounding the results of its review.
Sesame was fined £6m by the FCA in June 2013 for failing to ensure investment advice was suitable and for failings in the systems and controls that governed the oversight of its appointed representatives.
Friends says costs arising from the latest complaints provision is not expected to have a “material adverse impact” for the parent company.
Friends says: “The company has given a letter of support to SBG to assist them in meeting their liabilities as they fall due. A number of business reviews are currently being undertaken in these companies and provisions of £31m have been included in respect of customer redress.
“There is considerable uncertainty surrounding the outcome of these reviews, the number of future complaints and the associated costs for dealing with redress and complaint administration activities.”