Sesame Bankhall Group has axed its wealth management arm for advisory firms which will result in all its investment advice firm members having to become directly authorised or choosing to become appointed representatives elsewhere.
The move is part of a restructuring of the business following a strategic review aimed at returning the company to long term profitability. Sesame says the review, supported by parent Friends Life, is being undertaken to ensure SBG is "best placed to respond to the future opportunities in the rapidly-changing financial services marketplace."
John Cowan, executive chairman of SBG, said the company will be expanding its Bankhall business and will be continuing to expand its mortgage business but will no longer offer an appointed representative option for wealth management firms. These firms will be "given time" to choose to become directly authorised with support from Bankhall or can choose to remain as appointed representatives and move to a new network partner.
Mr Cowan said: "Our objective in the re-structured group is to play to our strengths. In the mortgage market we will continue to operate our market-leading PMS mortgage club and our appointed representative (AR) network for mortgage firms, together representing around 25% of all UK intermediated mortgage lending.

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"A further strength within the group is our Bankhall business, which is already a strong market-leading brand and has significant growth potential. Bankhall will continue to further enhance its range of services and in doing so respond to the enormous changes and exciting opportunities emerging in the at-retirement market.
"Our future plans mean we will develop our growing Bankhall business and we will continue to grow our mortgage business, including our AR network option for mortgage firms. However, we will no longer offer an AR network option for wealth firms. Wealth firms currently in our network will be given time to become directly authorised with the support of Bankhall. Alternatively, as part of our commitment to offer choice, firms preferring to remain as ARs will be able to move to a new network partner. We are in talks with another advisory group to help facilitate a smooth transition for those firms who would prefer this route.
Andy Briggs, group chief executive of Friends Life, said: "The SBG leadership team is well-placed to continue to deliver improvements to the business and further strengthen it for the future. By building on the work already done to put the business on a strong footing, I am confident that these further initiatives will contribute to developing a successful, profitable and attractive business building on the established strengths in the mortgage business and Bankhall."