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Sesame to close financial adviser school

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.

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. They had a school? Did anyone graduate? What was the level? Just enough to pass regulatory requirements?

  2. Cynic Harry. Yes, Yes. Good, one on the road to chartered.

  3. What a moronic comment…

  4. I believe that this shows that we are now a dying industry.

    Regulation has made business so uncertain that financial advice businesses are basically uninvestable. The idea of committing thousands to training new financial advisers is just stupid. Sesame were commendable for attempting it in the first place but the regulator has basically destroyed them.

    The other routes into financial advice, such as direct sales and broker consulting have now gone.

    I know that Sesame and direct sales were way short of perfect, but is the new post RDR world really better for the consumer? I suspect not, although it is generally better for those of us who have businesses that have survived.

  5. John Joe McGinley 21st April 2015 at 10:41 am

    Very sad to see the end of the Financial Adviser School a noble attempt to grow the profession with enthusiastic & passionate students and dedicated staff. I wish everyone well.

  6. Yes, Soren, there’s the irony. Lack of understanding of market forces in the minds of those behind RDR has resulted in the opposite of consumer benefit or protection. Apart from for the dwindling numbers at the top of the tree who are still viable clients and who probably didn’t need that much protecting in the first place.

  7. Simple maths really relating to RDR, Sants quoted a loss of a 1/3 of advisers is worth getting RDR in place; he had his wish !!

    Now we know a loss of 33% (67 out of every 100) means we need to grow by just under 50% to get back where we started !

    Mind you this is all gravy really if the powers that be don’t want the industry to grow !!

    Sesame has no choice, and the FCA are quite relaxed about it, and we pick up the loss in revenue, levies etc etc etc

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