What are the terms of your contract?
Typically we provide a rolling three-month contract. Sesame’s culture is one of choice and flexibility. We are able to provide mortgage advisers with a range of services, whether they want to approach us and join our network or alternatively use the services provided by us in the directly regulated environment.
Do you have a minimum turnover clause?
We have a minimum retention fee for those joining our network proposition, but the majority of advisers find their turnover is well above this mark. We impose no minimum turnover requirement. Each adviser firm has its own individual requirements, so we encourage advisers to contact us to talk through the options available.
How many product categories do you act as principal for?
Our Financial Services Authority (FSA) authorisations include standard and lifetime mortgages, along with the majority of general insurance categories that are relevant to the services our members provide. Sesame is a major support services provider for financial advisers with considerable regulatory experience and a compliance team of more than 300 people providing valuable support.
What do you see as the size of your market share, and how many advisers do you have?
We supply services to more than 8000 financial advisers, most of who are active in the mortgage market. Our comprehensive mortgage and general insurance proposition provides advisers with the support they need for whichever path they choose. Within our appointed representative (AR) network model, around 4000 advisers are regulated by Sesame for mortgage business.
Mortgage Day marked the beginning of the new shape of mortgage distribution. A lot of non-regulated advisers who opted for the directly regulated route are realising that regulation is a very different world to the one that existed under the old MCCB regime. They are becoming increasingly attracted to an environment where they have support that is closely tailored to their needs. Meanwhile, some advisers who chose the AR route are finding that their network is failing to deliver this and they are looking to switch to firms that have the scale and ability to offer a comprehensive support package for both ARs and directly regulated advisers. It is becoming increasingly clear that the critical mass major players, such as Sesame, have is crucial and we expect to see the trends in further consolidation and rationalisation to continue.
What is your proposition to brokers in terms of cost and fees?
We offer charges from £50 per month and 5% of turnover, combined with leading procuration fees and commission rates from lenders and general insurance providers. We can do this by using our size in the market to negotiate better deals for our customers.
What services do you offer – for example, compliance, T&C or packaging.
Sesame provides the complete mortgage service with support to cater for both specialist mortgage brokers and general financial advisers, offering either a network model or a directly regulated proposition. Furthermore, mortgage advisers now have more choices with the launch of Sesame Select, which provides life products and enhanced commission from five of the UK’s leading product providers. Within this proposition advisers are able to access either the whole of the market or our Mortgage Select panel, depending on their requirements.
We also have a general insurance proposition, enabling members to place personal lines business with a broad range of providers.
What is your offering for those who are directly authorised or act as an introducer?
Compliance support is one of our key differentiators and no other network has our depth of experience in managing FSA regulation and providing valuable helpdesk and face-to-face support. We offer a compliance service that is light of touch but provides the protection and reassurance advisers are looking for, enabling them to focus on running successful businesses. We also offer integrated technology with pre-population of client data across the mortgage, protection and general insurance markets.
Other services include access to low-cost professional indemnity cover, business development and training support and mortgage workshops. The workshops provide a chance to meet major players from the top lenders. Our mortgage magazine delivers details of the latest developments from the mortgage industry as well as information and new initiatives from Sesame in the mortgage and general insurance market. Sesame also provides access to a range of additional opportunities for advisers to strengthen their business, such as special conveyancing and survey support services. It is becoming increasingly important for advisers to manage their business in a compliant manner, while improving customer service and enhancing their revenue streams. Sesame believes adopting integrated technology will be essential in order to meet these objectives and reduce the regulatory burden.
Sesame Mortgages’ online conveyancing service is proving popular and is just one example of how advisers can work smarter. Many advisers have existing professional connections with local solicitors and they can now refer conveyancing work via Sesame’s link-up with the online eConveyancer service, earning additional income at the touch of a button.
company FACTFILE
Sesame launched as the new identity for Misys IFA Services in August 2003 – bringing together five separate businesses under one brand.
Sesame doubled in size in November 2004 from 2000 to 4000 advisers, following statutory regulation.
The Sesame Select multi-tie proposition was launched in July 2005.
