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Sesame rules out platforms not looking at early re-reg

Sesame Bankhall Group says it will only consider platforms that are actively pushing for a rapid re-registration solution as the firm decides on its preferred choice for members.

Chief operating officer Stephen Young says re-registration is critical to the future success of platforms.

He says: “Re-registering assets is complicated and time-consuming for IFAs. It incurs unnecessary and significant costs in what should be a straightforward process.

“We will not be signing with any platform unless they provide assurances that they will actively push for re-registration to be implemented at the earliest opportunity.”

Young says if it is possible for operators to register assets onto their platform electronically, then it should also be possible to quickly and easily register them off.

Young believes the platform market will shrink significantly over the next five years, which will make smooth re-registration a necessity.

He says: “Today we have around 24 platforms. We do not believe there is a big enough market for 24 platforms to survive, so in a scenario where a platform stops trading it must be easy for people to move their assets to other platforms without a great deal of fuss.

“My guess is that over the next five years we will not have any more than half a dozen platforms in the UK.”

Young says Sesame is in the final stages of its due diligence on platforms and is likely to announce its preferred choice of members in July.

He says the network has not decided whether it will formally endorse more than one platform but adds that Sesame will aim to make more than one available to members.

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