Sesame network members will no longer be able to call themselves ‘independent’ from next month.
As part of the mortgage credit directive, which comes into effect on 21 March, the second charge loans market will become regulated.
For firms to be described as independent from that date, they must advise on both first and second charge loans.
But on Tuesday Sesame notified brokers they must refer second charge cases to its panel of master brokers instead of providing the advice themselves, thereby effectively banning them from calling themselves independent.
It said: “Network members refer to our panel of master brokers for second charge mortgages (and advice is provided by the master brokers on this panel). This means that from 21 March 2016, you will be unable to use the word ‘independent’ in any promotional material including your firm website, your stationery or verbally when discussing your services with customers.”
In March 2015, Sesame revealed it would no longer operate as a network for investment advisers.
SBG retained its mortgage arm, however, including the PMS mortgage club and a network for mortgage firms.