A network of financial advisers, which has been fined millions of pounds by the FCA since 2013, would go under without support of its parent firm, documents suggest.
Sesame is being propped up by Friends Life and would fail to survive without financial support, according to papers released on the proposed takeover by Aviva of Friends Life.
The disclosure to shareholders also showed that there could be as many as 1,500 jobs lost in total between Aviva and Friends Life if the buy out goes ahead.
Sesame reported an annual loss of £19m in March last year, having been hit with a £6m FCA fine in 2013.

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This was for failing to ensure that investment advice given to its customers was suitable and also in relation to the systems and controls that governed the oversight of its appointed representatives.
Another fine was issued in October. Sesame, thought to be the UK's largest network of advisers, was told to pay £1,598,000 for setting up a so-called 'pay-to-play' scheme which the regulator said undermined the ban on commissions introduced by the RDR.
The Aviva takeover papers stated: "Aviva understands that, in its current
form, it is expected to continue to make losses in the future. In addition, the Sesame business has potential liabilities arising from claims relating to advice or services provided to retail customers by appointed representatives of Sesame. Sesame is, therefore, reliant on the continued financial support of its ultimate parent, Friends Life, to be able to continue to trade."
Friends Life is still carrying out a review of the business, which has already resulted in the Sesame business moving to a restricted advice model.
Friends Life and Sesame are in discussions with the FCA about the review. Sesame "continues to rely on financial support from Friends Life" with "significant uncertainty" on the outcome of the strategic review.
The Aviva prospectus stated: "If Friends Life, or following completion of the proposed acquisition, the Enlarged Aviva Group were to withdraw Friends Life's financial support for Sesame...it is likely that the Sesame business will no longer be viable and will not be able to continue to trade."
This could hit the reputation of Friends Life and Aviva, the company said.
Aviva also laid out cost savings of £225 million by the end of 2017 by combining forces – which could include many job losses.
It said: "Aviva anticipates that this may result in a reduction of approximately 1,500 roles from the headcount of the Enlarged Aviva Group of approximately 31,500. At this stage, no specific teams, roles or locations have been identified."   

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