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Sesame to hike fees after tech upgrade

by Jun Merrett on Jan 09, 2013 at 07:12

Sesame to hike fees after tech upgrade

Sesame Bankhall Group will increase its standard fixed fees in August by up to £80 per month following the launch of a practice management system for its advisers.

The company currently has 250 advisers testing its XPLAN practice management system and will roll it out across the business as a compulsory part of its service.

The network previously raised its membership fees in August 2012 from £29.20 to £44.20 due to the increased cost of regulation. If the maximum £80 monthly increase was implemented,  Sesame advisers would see their weekly membership fees rise by £18.46 from £44.20 to £62.66, a 42% increase.

George Higginson, (pictured) chief executive of Sesame Bankhall Group said: 'We are being upfront with [advisers] to say that [the introduction of the system] will bring about an increase in standard fixed fees. However, we are giving [advisers] lots of advance notice. We expect the changes to come in over the summer and will not be making any changes to our prices until August of this year.

'[Advisers] will benefit from market-leading adviser technology as part of the core package. It will make it easier for [them] to prove [their] adviser charging and document [their] advice, and we know that is an area that the new regulator will be increasing its focus on going forward.

'Our solution gives [advisers] the ability to offer quality services that justify [their] adviser charging, such as reports, valuations and direct client access. It will enable [them] to operate more efficiently. For example, [they] will no longer have to send us client files, as we will be able to check them automatically.'

The network is also examining the launch of an execution-only service, using its Sesame One platform, a white-labelled version of the AXA Elevate platform, or its general insurance portal.

George Higginson, (pictured) chief executive of Bankhall Group said at the Sesame 2013 Symposium conference: 'We don't want to go direct to consumer, but we want to give [our advisers] the opportunity to go direct to consumer through our platform or general insurance portal and have the ability to trade directly with clients in the way [they] want.'

Last year the Openwork network said it would launch an execution-only platform.

2 comments so far. Why not have your say?

Paul Barnard

Jan 09, 2013 at 08:31

If you start selling to clients direct then you are not an adviser support network, surely?

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Christopher Petrie

Jan 09, 2013 at 08:44

The Networks face a real struggle to survive. You can't really blame them for trying to find ways to do so.

Some plans may work, others won't and some Networks will close up within the next few years.

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