The Financial Adviser School set up by Sesame Bankhall Group in 2011 is going to be wound down as part of the strategic review.
According to Stephen Gazard, managing director of SBG, the decision not to offer an AR network option for wealth firms means the FAS will no longer accept new recruits.
In a missive sent to SBG member firms today, Mr Gazard wrote: “The strategic decision not to offer an AR network option for wealth firms will naturally lead to some changes to the way we organise ourselves.
“Along with staff directly affected by our decision to no longer offer an AR network option for wealth firms, we propose to wind down the Financial Adviser School.
“We will continue to support existing FAS students, but we will no longer recruit new people into the School as we will not be able to offer them a prospective home in wealth firms within our AR network.”
It is not known whether the people working on FAS would remain with the business, but Mr Gazard said he was hopeful that SBG could redeploy resources to other areas of the business.
It is also not known what will become of the educational link-up SBG was attempting to forge with India in 2013.
He said: “There are some ongoing developments which could also influence this, including the number of current Sesame wealth firms who choose to become directly authorised with the FCA, using the comprehensive services and expert support available through Bankhall.”
Another development that could influence this is the transition to the AR wealth specialist partner identified by Sesame, but he did not state which firm this would be, although industry speculation has pointed the finger towards Intrinsic.
People at SBG will receive three months contractual notice by 30 April. This will be posted to members and they should expect it no later than 27 April.
The group will also be in contact with members on Friday 24 April to offer more information on the options available to firms, including details of the AR wealth specialist partner and transition arrangements.