Sesame confirms it will drop IFA mandate and go restricted
Network Sesame has confirmed that it is planning to drop its independence mandate for investment and pension advice and move to a ‘whole of market' restricted proposition in 2014.
The move is in response to what Sesame Bankhall group chief executive George Higginson (pictured) calls the Financial Conduct Authority's (FCA) "tougher and more intrusive regulatory approach", as well as the watchdog's ongoing thematic review into how firms have implemented the Retail Distribution Review (RDR).
It also follows feedback Sesame said it has had from advisers, who said they are looking for a whole of market proposition based on what they used to have pre-RDR.
It would see the launch of a new adviser proposition, Sesame said, alongside its current panel proposition.
Higginson said the Sesame Bankhall group "continues to have a long-term commitment to supporting independent advisers within the group".
The network's mortgage and protection advisers will remain independent, and more than 5,000 IFAs are directly authorised through the group's support services provider arm, Bankhall.
Under the new mandate firms, depending on their size, would have the ability to operate a hybrid business model spanning network and directly authorised permissions, encompassing independent and non-independent advisers.
Higginson said the plans are "still work in progress" and will be confirmed at the group's annual conference in January. From that date firms will still have six months in order to consult with the network, and make a decision about the future of their business.
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