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Sesame Select firms must leave network

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

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