Sesame admits 4% will be hit by charge increase

About 4 per cent of members will have to cough up more cash after the network raised it’s minimum retained income requirement for wealth advisers, Sesame told FTAdviser.

Stephen Gazard, managing director of Sesame Bankhall, confirmed the network is raising the minimum retained income requirement for wealth advisers, from £6,000 a year per firm to £7,500 a year for the first adviser and £2,500 for each additional adviser.

The total minimum retention will be averaged across a firm.

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Although he emphasised Sesame network members will benefit from a price freeze on fixed fees this year, Mr Gazard said the increase will affect around 4 per cent of members who “are typically lower producing advisory firms with an annual turnover of less than £36,000.”

Mr Gazard said: “We appreciate that some of our members will now have a decision to make about their future. For example, some are sole traders who might benefit from joining another local adviser firm.

“However, from Sesame’s perspective, the reality is that there is a small proportion of firms for whom we simply can’t justify the level of robust support that is required going forward.

“There is no change to our minimum retention requirements for our mortgage and protection advisers.

“These steps continue to demonstrate the group’s commitment to deploy our resources effectively, in order to support productive forward-looking firms who are focused on delivering robust consumer outcomes.”