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Topics: sesame| Bankhall| FSA| RDR| Restricted advice| Independent Financial Advice
Sesame Bankhall will launch a restricted advice service for at-retirement customers with small pension pots.
The group is developing a fee-based proposition that will run alongside its retirement referral arm Gateway.
It will cater for consumers with retirement funds of £30,000 or less, for whom the cost of using an IFA "may outweigh the benefits of the advice".
Consumers will pay a small fee in return for straightforward financial guidance based on their answers to a simple, online questionnaire.
Although its development is at an early stage, Sesame Bankhall hopes to have the service up and running by 2013.
Group chief operating officer Stephen Young says: "For clients with pension funds of £30,000 or less, the amount they would gain from independent advice would unlikely be justified by how much it costs.
"There is room for restricted advice in relatively small, niche areas."
Young, however, adds there is no longer a reason for IFAs to drop the independent banner and offer restricted advice after 2012.
He says the FSA's "watering down" of the requirements for independence in March's RDR Policy Statement mean advisers no longer have to review the whole market for each product for each client.
In the paper, the regulator said if firms conclude certain products, such as unregulated collective investment schemes, are unsuitable for its clients, it will not need to review that market for each customer.
Initially, the FSA estimated it would cost firms an extra £16m a year to pay for the additional product searches and assessments to review the ‘whole of market' for each product.
"A lot of advisers would have chosen to go restricted, but not now," Young says. "The costs could have pushed a number of advisers away from the independence label, but the FSA did the sensible thing."
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What is it Sesame wants to be?
I couldn't agree more! I can hardly find the time to see clients these days. The compliance burden is too much to bear and needs to be simplified before the headache become terminal.
Posted by: Another Sesame member
Sesame Bankhall
I find it concerning that a member of the network is asking what Sesame do for them?! We have individuals within the organisation that work tirelessly in order for you the adviser to recomend products to your clients helping you to run a successful business. We have the knowledge, skills and expertise within the organisation and can assure you that the Independent Financial Advisers are at the forefront of our minds, not just at senior level but down to the indiviudals who turn up for work each day to review products, deal with complaince issues, liaise with providers to give you the best products & rates etc - I can assure you that we look to the value that we offer the advisers in all we do, from the successful learning events we host through to software and systems in place. With regards to ''compliance burden'' unfortunatly as long as their is the regulator their will always be a ''complaince burden'' I know from speaking with other members that they prefer the services, safety and security of the Sesame network and while I appreciate complaince issues may be deemed as a burden, in truth it would be no easier if you were DA or with any other network - we at Sesame run a tight ship and pride ourselves on the service we deliver to our Advisers -we have thousands of advisers that continue to enjoy the benefits of being with the No1 Network and many who have been with us for numerous year which we recognise with our long service awards. We never loose sight of our Independent Financial Advisers - however not one cap fits all and you need an organisation thats flexable and can accomodate for advisers wanting to be Directly Authorised. opposed to being under a Network - The Bankhall service offering provides you with the services you require to help you run a successful business. The message here is clear and simple that whether a Sesame Network or Bankhall Direct Adviser Sesame Bankhall is here with you, to help you run a successful business. Regards
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What is it Sesame wants to be?
Do Sesame actually know what they want to be? They started out as a network for IFA's, then fcussed their attention on attracting the masses of mortgage advisers and now seem to be putting their attention to direct business through a joint venture with a member firm. Seems to me that yet again they are forgetting their original IFA members from which they gain most of their revenues. What are they doing for us other than causing us a constant headache?
Posted by: Sesame member