Sesame is to close its Financial Adviser School and is consulting with staff affected by its decision to scrap its investment advice network.
In March, Sesame Bankhall Group announced it will no longer operate as a network for investment advisers as part of a fundamental overhaul of the business.
In an update to members today, seen by Money Marketing, Sesame says it has commenced a series of consultations with staff across the group who are affected by the proposals.
Sesame could not confirm how many staff are in consultation. It employs 500 people across the group.
The update also says it will wind down the Financial Adviser School, its training programme for new advisers.
SBG managing director Stephen Gazard says in the update: “We will continue to support existing FAS students, but we will no longer recruit new people into the school as we will not be able to offer them a prospective home in wealth firms in our AR network.”
There are currently 50 students enrolled at the school, which has over 100 alumni.
Gazard adds: “We are hopeful that we can redeploy resources to other areas of the business and there are some ongoing developments that could influence this.”
He says this includes the number of members which choose to become directly authorised through Bankhall.
Under the new structure, appointed representatives will have to go directly authorised as part of Bankhall, move to a new network partner or leave altogether. The identity of the network partner, believed to be Intrinsic, is expected to be announced before the end of April.
Sesame will give ARs three months’ contractual notice on 30 April to make a decision.