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Sesame posts £10m pre-tax loss

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Sesame Limited has reported a pre-tax loss of £10.2m for 2014, compared to a £30.1m loss for the previous year.

In March Sesame announced it will no longer operate as a network for investment advisers as part of a fundamental overhaul of the business.

In July Aviva and Friends Life pledged £45m in financial support for Sesame to cover potential liability and restructuring costs.

Sesame’s results, published this week, show it set aside £31m for complaints as at 31 December 2014, compared to £40.9m as at 1 January 2014.

The network used £22.2m of the provision during the year.

This includes the cost of carrying out a review into pensions transfer advice. Sesame says Deloitte was initially engaged to carry out the review, but responsibility was passed to The Consulting Consortium during 2014.

The results reveal Sesame upheld 619 complaints during 2014, which was 23 per cent of all new complaints received. In 2013 the network upheld 615 complaints, which accounted for 19 per cent of complaints received.

Sesame Limited incorporates the wealth and mortgage networks only, whereas Sesame Bankhall Group reports separate results and also includes the directly authorised Bankhall business.

In August 2014, Friends Life’s half-year accounts revealed that Sesame Bankhall Group had set aside £31m for customer redress.

SBG posted an operating loss of £5m for 2014, compared to a £19m loss in 2013.

A spokesman for Sesame says: “The important point for advisers is that following the outcome of its strategic review, SBG is now firmly focused on developing a profitable restructured business which acts in the best interests of professional financial advisers and their customers.

“SBG is playing to its strengths by continuing to invest in its mortgage business, while also bolstering its support for wealth advisers through Bankhall.”

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