Sesame members wanting to use its new multi-tie, unveiled last week, have been told they must leave the network to become directly regulated.The network says it sees bigger firms as most likely to follow the multi-tie route into its Sesame Select offering – which ties with Axa, Legal & General, Norwich Union, Standard Life and Prudential. Sesame says it expects firms to want to split advisers bet-ween multi-tied and whole of market advice but FSA rules make it difficult for appoin- ted representative firms to have some advisers in a multi-tie operation owned by their principal. Directly authorised firms on the other hand are allowed to have some advisers connected to a multi-tie organisation while other advisers offer whole of market advice. The five providers on the multi-tie will each supply products for every sector and will include over 250 funds from 36 different invest- ment houses. Network members which leave to join Sesame Direct could be offered benefits not available to network members leaving Sesame altogether such as not freezing commission during the novation period, discretionary agreements around client file ownership and run-off cover for PI insurance. Sesame commercial director Charles Bryant says: “Exclu-ding network members is not a decision we have taken lightly. We believe Sesame Select will only be suitable for some of our customers and they will be firms that want to have some advisers offering the multi- tie and others offering a whole of market option. For the foreseeable future, there is no question that both the directly authorised and network models are key.” Financial Planning Service certified financial planner Julian Crooks says: “If someone could ‘guarantee’ that ser- vice standards would improve, then that might hold some attraction as provider ser- vice levels are getting progressively worse. Until I see something definite, I will rem- ain sceptical.” Sesame results, p10
Scottish Widows Investment Partnership has reduced the minimum investment in its property unit trust from 100,000 to 5,000. Demand for commercial property investment continues to be strong. The move aims to open the fund to the wider retail market following its launch in November 2004. The Swip property trust has been marketed through Lloyds TSB’s […]
Guaranteed Investment Bond
Friends Provident is introducing a lifetime nil-rate band trust with the intention of reducing clients’ inheritance tax liabilities by up to 110,000. The trust will initially be available only to married couples. However, it will be opening up to registered same-sex civil partners from December 5, 2005. Friends Provident says the trust will allow clients […]
The Treasury select comm- ittee will meet the FSA early in the next Parliament, with the effects of depolarisation set to be a key issue for dis- cussion. Labour MP Andrew Love, a new TSC member, says one of the first actions of the committee after the recess will be to meet the regulator to […]
A recent survey of employers, carried out by Jelf Employee Benefits, suggests that many employers intend to utilise the new Fit for Work service in some form as an absence management tool.
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