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Sesame offers members interest-free FSCS levy loan

by: IFAonline
  • 11/02/2011
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Sesame offers members interest-free FSCS levy loan
Sesame is to offer members the option of paying their FSCS interim levies over two years via an interest-free loan.

Although the firm already has 12-month instalment options to help members with various fees and levies, the magnitude of the recent interim levy has put further pressure on many businesses.

A £35 charge exists for the plan and members are currently being sent letters with more details about it.

Nick Kelly, managing director of distribution at Sesame, said: “The substantial additional FSCS levy is a body blow to advisers, given the economic and regulatory pressure that firms are already under right now.

“The fact that the FSCS is demanding the levy is paid within 30 days is further compounding the issue. Sesame is responding by using its financial strength to alleviate the pressure on our members.

He added that a longterm solution is needed for how FSCS fees are allocated across the financial services industry in the future.

He said: “As the current trend of fewer advisers sharing the burden of higher fees is simply unsustainable. In our view the FSCS is levying the advice profession for failings that occured in the provider and fund management sector. This is unjustified and and it is increasing the burden on good competent advisors.”

John Coles, finance director at IFA firm Beard & Coles in Aldermaston, added: “The size of this additional FSCS levy and the rationale behind it are appalling for IFAs, so it is good to see Sesame stepping in to help.

“The FSCS levy is hitting us during a difficult period when forward looking firms are moving away from initial commission towards fee-based and trail income, so the last thing we need are sudden financial shocks such as this,” he explained.

 

 

 

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