Sesame says ‘scale’ all important as Bankhall talks continue

IFA network Sesame says its impending acquisition of Bankhall will give it the “scale” necessary to thrive in a post-RDR world.

It claims any deal, which would also include Premier Mortgage Services (PMS), would create the largest network in the UK with more than 3,000 appointed representatives (ARs).

According to Sesame and support services provider Bankhall, the “scale and breadth” of the combined group would enable it to cater for any adviser proposition after 2012.

The FSA’s RDR Consultation Paper, issued a week ago, suggests splitting the advice market between ‘independent’ and ‘restricted’ advisers.

Independent advisers must offer services based on a "comprehensive and fair analysis of the relevant market" which is "unbiased and unrestricted". Firms that do not meet this criteria can not call themselves independent.

But Sesame sales and marketing director Steve Young says a combined unit encompassing Bankhall and PMS will be able to meet both requirements.

“Scale is important,” he says. “This combination will give us the scale we need to make the necessary investments for the RDR.”

David Golder, managing director of IFA services at Bankhall, adds: “It is clear to most that future regulation will bring change in the industry.

“At the same time, scale has always been a differentiator and the proposed arrangements will allow us to deliver in supporting members through those changes.”

Young says Sesame has made an indicative offer for Bankhall and PMS, which was accepted by Skandia, and is now in the process of putting together a binding offer. A deal should be completed within six to eight weeks, he says.