Sesame Bankhall Group 2011 Results
→ In its 2011 results announced today, Sesame Bankhall Group (SBG) has outlined details of its trading performance and multi-million pound investment programme to support advisers ahead of the Retail Distribution Review (RDR) and Mortgage Market Review (MMR). This is enabling firms to re-engineer their business, so that they can operate efficiently and responsibly in the future.
These investments are helping SBG to build its position as a broadly-based financial services group, developing the widest range of quality services for advisers to choose from. In 2011 these new initiatives helped to increase Sesame's adviser productivity by an average of 20 per cent.
In challenging market conditions SBG generated a trading profit in 2011 of £2.2 million (2010: £5 million) and made significant investments in its technology infrastructure and new services for customers. After breaking even at the 2011 half-year point, SBG's performance in the second half of 2011 was very encouraging.
SBG is a robust, well capitalised and financially strong business. The Group maintains a healthy financial surplus, over and above the FSA's stringent solvency requirements.
In 2011 SBG retained its position as the UK's largest distributor of mortgages through intermediaries, with over £26.1 billion of mortgage applications in 2011 (an increase of £1.9 billion on 2010). This represents a 13.8 per cent share of the entire UK mortgage market (2010: 13.3 per cent).
Key developments launched in 2011 include:
- The roll out of SBG's investment platform service, offering enhanced terms for advisers and their clients. In the opening 12 months the platform accumulated over quarter of a billion pounds in assets.
- A new compliance system for appointed representatives of Sesame Network, which is helping to improve risk management and adviser efficiency.
- Sesame Bankhall Valuation Services, a new panel management service for residential property valuations.
- A protection panel of six leading providers, which is now being used by 2,200 advisers and helped increase protection business by 25 per cent.
- The Financial Adviser School, which is developing the next generation of professional financial advisers and helping firms with their recruitment and succession planning.
Other developments that will be launched in 2012 include:
- Optimum Investment Management, a new joint venture between SBG and Henderson Global Investors.This is part of a new wealth management solution that will enable advisers to create bespoke investment solutions for their clients, and incorporate new RDR asset classes such as investment trusts and ETFs.
- An attitude to risk tool to help advisers determine the most appropriate investment solutions for clients and document the advice given.
- A new client and practice management system for advisers that is being developed in conjunction with financial services technology provider, IRESS, and will help adviser firms to operate more efficiently.
- A restricted advice service giving advisers access to a broad range of the UK's leading providers that will be underpinned by innovative technology. This will enable advisers who do not want to take on the extra requirements of independence to continue to trade.
SBG's successful performance in 2011 has continued into 2012, with SBG's strength, strategy and new broader range of services leading to growth in adviser recruitment and productivity, along with revenue and assets under influence. In January 2012 there were over 100 Sesame adviser authorisations, the best monthly performance in over seven years.
As the advice profession looks ahead to the new world being created by the RDR and Mortgage Market Review, SBG will become the home for all types of professional financial advisers, whether they are independent, restricted or a combination of the two. This will enable SBG to consolidate its position as the UK's largest distributor of financial advice through directly regulated intermediaries and appointed representatives, across life, pensions, investments and mortgages.