Letter of the week

Nick Jackson

In reference to the decision by Sesame to close its network to wealth advisers (FA, 2 April): all major networks are doomed, because it is impossible to control appointed representatives to the standard required by the FCA without basing compliance levels on the lowest common denominator.

Once a network has a significant number of ARs, the lowest common denominator is very low indeed. This restricts any decent adviser firms and they exit, leaving behind an ever more concentrated pool of poor quality advisers. I think Sesame will survive with mortgage/protection as its core business, but if I was a AR wealth firm, I would think twice about going to another network. I am really interested to see which network is prepared to take on the risk of all of those ex-Sesame ARs.

Nick Jackson

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Partnership member, Derbyshire Independent Financial Advisers, Derby