Sesame names five partners in multi-tie

Sesame has chosen to tie to five providers as part of its directly regulated multi-tie service, which will be known as Sesame Select.

Axa, Legal & General, Norwich Union, Prudential and Standard Life will provide their complete ranges of investment products to advisers under the plan, as well as their mortgage, pension and protection offerings.

According to Charles Bryant, commercial director at Sesame, the group received proposals from a large number of providers, which were considered for the multi-tie on the basis of several factors. These included financial strength, brand strength, the willingness to commit to advanced service levels and being product-focused. The providers’ open architecture options and their ability to offer a full suite of products were also considered, he says.

Through the five providers, advisers will have access to 280 different investment choices from 36 investment houses, according to Bryant.

Bryant adds that all five providers that were chosen offer a full suite of products and are operating in what the group considers to be key areas.

Advisers will still be able to access non-packaged fund products through their previous fund platform, according to Bryant. Mortgages will also remain whole-of-market under the proposal. Advisers will be able to operate either a commission or fee-based charging structure under the multi-tie.

According to Sesame, those advisers who choose to join the platform will also have access to professional indemnity cover, compliance support and a research service through the multi-tie arrangement. The multi-tie is being aimed at elements of advisers’ existing clientele as well as those who have never received financial advice, according to the group.

Sesame currently provides support services to just over 8,000 advisers in Britain. In addition to the new Sesame Select offering, the group also has Sesame Network, for appointed representatives, and Sesame Direct, for directly regulated advisers.

Sesame is awaiting approval from the Financial Services Authority before officially launching the multi-tie. The group’s discussions with the FSA are advanced at this stage, says Bryant, adding it hopes to receive regulatory approval in the next couple of months.