Sesame unveils 'small' annuity referral service

Sesame Bankhall Group has launched a referral service for members faced with clients possessing pension pots of £30,000 or less.

Advisers can send their annuity business to its retirement referral arm, Gateway Specialist Advice Services, who will consult with the adviser and their client with a view to writing the business on their behalf.

The adviser receives an introduction fee, while Gateway takes on full regulatory and professional indemnity responsibility.

Sesame Bankhall says the service is designed to cater for the growing small annuity market and provides a solution to the "growing problem" of how advisers cost-effectively service clients with small pension pots.

"Independent advice remains the gold standard, but our profession has to face up to the dilemma of how we service all clients cost effectively," Sesame Bankhall chief operating officer Stephen Young says.

"Gateway's referral service is the shape of things to come. It enables advisers to continue to service their clients and add value by boosting their income in retirement, but in a way that is sustainable for the firm."