View more on these topics

Sesame posts £10m pre-tax loss

Careful-Research-Business-Finance-Paperwork-700.jpg

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.”

Recommended

Cicutti-Nic-2014-MM-700.jpg
5

Nic Cicutti: Where is the FCA on charges disclosure?

I do not suppose many readers of Money Marketing remember Tim Miller. For those who do not, before his untimely death on a car race track some 15 years ago, Miller was one of the industry’s most highly successful marketing strategists. I first met him at one of the many “meet and greet” events for new MM […]

FCA logo new 620x430.jpg
4

FCA bans and fines ex-Keydata director £350k

The FCA has banned and fined former Keydata finance director Craig McNeil £350,000. Keydata designed and sold investment products to retail investors via IFAs. The products were underpinned by Keydata’s investment in bonds issued by Luxembourg special purpose vehicles, including one called SLS Capital. Following Keydata’s administration in June 2009, its administrators discovered that SLS […]

George-Osborne-in-Television-Studio-700.jpg
1

Osborne eyes UK/China stockmarket deal

Chancellor George Osborne says Britain and China will “stick together” as he aims to make the UK China’s primary base of finance in the West. In a speech to the Shanghai Stock Exchange, Osborne said the recent market falls in the country and subsequent moves by the government to prop markets up and devalue its currency […]

4

Mel Kenny: Do financial services firms really care?

Financial services advertising used to be shouted from high profile billboards, but that is now  a distant memory. We are a stage where it is now considered old hat to bellow the financial services sales message during the online experience – having to close all the pop up boxes that get in the way of […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment