Sesame to ‘invest millions’ in 2010 in members’ RDR transition

Sesame Bankhall Group says it will “invest millions” in 2010 to support its member firms make the transition to be RDR-compliant by 2012.

In an update outlining its priorities in 2010, chief operating office Stephen Young also says the group will invest in recruiting and training the next generation of financial advisers.

Sesame finalised the takeover of Skandia-owned Bankhall, along with Premier Mortgage Services (PMS) in October last year.

The deal created the largest appointed representative network in the UK with more than 3,000 individual advisers and the largest directly-regulated service business, supporting more than 1,500 firms.

"Whilst RDR is the hot topic right now, the wider regulatory environment will not get any easier," Young says. "It is clear the FSA has reduced its risk appetite and is pursuing a more intrusive and punitive regulatory agenda that plays to the pro-consumer lobby.

"But don't be fooled into thinking everything is lost, because that is far from the case. Sesame Bankhall Group believes in the future of professional independent advice and, in 2010 and beyond, we will be investing millions of pounds to develop support to help advisers make the transition to the new world."

Last year the group set up its ‘Prepare for 2013' programme, which includes business transition and qualification support as well as IFA Exchange, which provides guidance for firms preparing for sale or acquisition.

Young says he remains hopeful the final details of the RDR, to be outlined by the FSA in two papers released in Q1 and Q3 this year, will include the possibility of work-based assessments for advisers yet to meet its QCF level four minimum qualification rules.

But he says "whatever happens" the industry is faced with having fewer advisers going forward.

"Our profession needs a long-term vision and a willingness to step forward and invest in recruiting and training a new generation of IFAs. Expect to see more in this area next year from Sesame Bankhall Group.

"With the retreat of the State from benefit provision, ordinary people need the expert guidance of our profession more than ever before, particularly in the absence of any evidence that banks can step up to the challenge."