Sesame chief executive Patrick Gale says he expects to grow the firm’s appointed representative network rapidly under the ownership of Friends Provident.
Gale says previous owner Misys was not willing to provide the capital needed for expansion but Friends Prov will support its expansion plans over the next six to 12 months following its £75m takeover of the distribution firm in May.
He says: “There is a fundamental change in dynamics between the two owners. Under Misys there was a concern over the absorption of capital around the AR network that is now not an issue going forward with Friends Provident.”
“Friends Provident is more comfortable to employ capital because the return is more appreciated and they understand this market employment of regulatory capital. I think there is no doubt you will see a quantum increase in the number of appointed reps as for those that have capital there is a place that smaller firms can go for comfort and safety.”
With the evident trend of advisers in the life and pensions markets favouring the directly authorised route, Gale says many of the new member firms are likely to be mortgage and GI advisers.
Gale says: “We are definitely seeing more DA for life and pensions but mortgages going in opposite directions – that should give you an idea of where we see things moving.”