Mike O’Brien, managing director of TenetConnect and TenetSelect, confirmed eight non-investment firms with 44 arrangers and 14 advisers have left Sesame and joined his Leeds-based mortgage and protection network.
All eight of the firms have joined Tenet since the end of March, when Sesame announced it would no longer house retail investment advisers.
Bosses at Sesame stated they were pulling the plug on their investment network due to an RDR-inspired “natural migration” towards direct authorisation that it said challenged the “basic premise of the network model”.
However, last month Sesame Bankhall Group committed itself to the development of its mortgage appointed representative network and PMS mortgage club at its inaugural national mortgage conference.
John Cowan, executive chairman at SBG, told the 500-strong audience that the SBG leadership team is focused on developing a profitable re-structured business.
When asked why his mortgage network had seen a sudden surge in the number of advisers joining from Sesame, Mr O’Brien said he felt it was to do with the strength and quality of their proposition, adding that it was easier for non-investment firms to move networks.
“This year TenetLime has seen significant growth in adviser numbers and turnover, well above sector average, and Tenet as a whole has won three high profile industry awards in the last year.
“It also helps that we have longevity, a good regulatory record, a strong balance sheet and are making a modest level of profit, so we are also seen as a safe harbour in turbulent times.”
When the numbers joining Tenet were put to Sesame, John Cupis, managing director of mortgages at Sesame Bankhall, responded by saying he was “very confident” about the outlook for the mortgage business and felt his business was well positioned in the Mortgage Market Review world.
“We continue to attract and retain high quality mortgage firms, which has led to a significant increase in mortgage volumes over the last year. The productivity of our network members is also at a record high.
Mr Cupis continued: “We have a massively successful network and mortgage club, which through Sesame and PMS represents around 25 per cent of all UK intermediated mortgage lending.
“We are working hard to ensure our members continue to have all the assistance they need to help them grow their businesses further in the coming years.”