Sesame Bankhall Group has beefed up its compliance procedures for independent advisers who write business off its newly drawn up approved product list in a bid to keep professional indemnity (PI) costs down.
The move, dubbed ‘Project Prism’ by Sesame chief executive George Higginson, is part of the network’s effort to keep a lid on PI costs and follows its decision to formalise an approved product list for independent advisers.
The network will check and have the power to block any sale of a product not on the list. It currently operates on a post-sale check process after the adviser has written business.
Speaking at the Sesame Bankhall Group 2013 Symposium, Higginson (pictured) said: 'We need to have a more robust process to ensure one person in our network doesn't go off and sell toxic products that the rest of us pay the price for. That costs all of us on our PI cover.
'We currently have an approved list of products. This will become a formal panel for those who want to remain independent in the network. You can go off panel, but there will be a robust pre-sale process so we know what's going on... And that's only fair to protect us all.'
The company also announced it had added provider Royal London to its restricted advice panels.
Sesame announced the launch of its restricted advice panels in late 2012 in five areas including investments and at-retirement. Providers on the panels include Aviva, Aegon, Zurich and Prudential.
Under the deal Scottish Life will provide pensions and at-retirement products and Bright Grey will offer personal and business protection products.