Sesame members are being urged to take immediate action rather than wait for further details of the firm’s new network partner, as experts warn they could face delays in becoming directly authorised.
Last week, Sesame Bankhall Group announced it would no longer operate as a network for investment advisers as part of a major overhaul of the business.
SBG will retain its mortgage arm but says appointed representatives in its investment network will have to either go DA as part of Bankhall, move to a new “network partner” or leave altogether. Further details including the identity of the network partner, believed to be Intrinsic, are expected before the end of April.
Threesixty managing director Phil Young says: “Members are best off deciding where they want to go and getting on with it now, rather than waiting to be transferred.
“The decent thing for Sesame to do would be to give members at least six months to go DA before it pulls the plug on their investment permissions. If it gives ARs only a few months to decide, that would leave members with no choice but to go with the new partner or to Bankhall.”
Beaufort Group chief executive Andrew Bennett says: “It is likely to take Sesame ARs longer than usual to go DA because the FCA will want to carry out additional checks.
“Sesame members need to get on the front foot and make a decision based on their own research, rather than end up somewhere that doesn’t suit them.”
In a letter to members this week, Sesame said ARs will be given three months’ contractual notice on 30 April to make a decision on their future.
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.