The network and support services company has set up a provision following a review of past business, including pension transfers.

The group was also fined more than £6m last year for failures in relation to Keydata advice.

Owners Friends Life said a strategic review of SBG is “ongoing”.

The SBG loss did not prevent Friends Life from turning a £32m loss in 2012 into an operating profit of £40m last year. But it called the SBG result “disappointing”.

Earlier this year, the Sesame network confirmed it is planning to drop its independence mandate for investment and pension advice and move to a ‘whole of market’ restricted proposition.

Sponsored

Are your clients ready for the first Making Tax Digital reporting deadline?

Sponsored by BM Solutions

The move is in response to what now-departed Sesame Bankhall CEO George Higginson (pictured) called the Financial Conduct Authority’s “tougher and more intrusive regulatory approach”, as well as the watchdog’s ongoing thematic review into how firms have implemented the Retail Distribution Review (RDR).

It also follows feedback Sesame said it has had from advisers, who said they are looking for a whole of market proposition based on what they used to have pre-RDR.