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Ex-Sesame director courts 200 IFAs for new national

by Jun Merrett on Apr 23, 2013 at 09:31

Ex-Sesame director courts 200 IFAs for new national

Former Sesame Bankhall Group director Nick Kelly is to launch a national IFA and is understood to be in talks to recruit around 200 advisers for the firm.

Kelly’s new venture, Alexander House Financial Services, will launch on 1 May, pending authorisation from the Financial Conduct Authority. It will offer independent advice on a face-to-face basis and by phone and the internet.

It is understood Kelly, who was distribution director at Sesame until November 2012, will be chief executive of Alexander House. He will be joined at the firm by former Sesame head of customer services Jane Hodges, who will be chief operating officer.

A source close to the situation said Kelly (pictured) was in talks with 200 advisers from up to 15 firms about joining the national.

Alexander House wants to recruit chartered financial planners to be ‘virtual boffins’, providing individual and corporate clients with advice online and over the phone, and diploma qualified advisers to provide face-to-face advice.  

Advisers joining the firm will be able to work from their own office or be based at the firm’s Kent headquarters.

IFAs will be offered shares in Alexander House and will be given the opportunity to buy their client book from the firm if they choose to leave.

According to documents filed with Companies House, the firm was incorporated on 8 January 2013. It has one initial shareholder, Capital Kinetics LLP, a corporate finance firm based in Milton Keynes.

Kelly left Sesame as part of a company reshuffle in November 2012 having spent more than four years with the network. He was replaced by ex-Lighthouse Advisory Services managing director Stephen Gazard.

David Ingram, partner at consultancy Aim Two Three, said Kelly’s national could thrive in the current climate.

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21 comments so far. Why not have your say?

Bob Donaldson

Apr 23, 2013 at 09:44

Merry go round. Bit like the old direct sales days. Senior manager left and tried to take half the team with them.

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Jonnieb666 via mobile

Apr 23, 2013 at 09:51

Why would anybody be daft enough to buy their own clients back? This is another chancer looking to line his own pocket IMHO!

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Man in Black

Apr 23, 2013 at 09:56

Arguably, this is the classic '5 forces' issue whereby businesses that need to recruit and retain contract advisers or ARs will always struggle to make a consistent profit given the ability of new entrants.

That said, there will be some value for advisers wanting to leave old Networks/Nationals. Nick Kelly's involvement with 'Sesame' goes back to his time with IFAN and I remember Jane Hodges joining what was Misys IFA Services back in 2000/1 when I was also working on Salford Quays. These are bright people and hopefully it will mean some fresh thinking and an improved proposition for advisers.

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John Invest

Apr 23, 2013 at 10:02

No way in a month of Sunday's would I hand over my client bank that I have worked years to build over to a National only then to have to buy it back again!!!

Also I bet they are taking a large sice of adviser fees to pay for the services on offer!

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Neil Chamberlain

Apr 23, 2013 at 10:02

Innovation is a key. Deloitte produced the Bridging the Advice Gap paper in December 2012. Providing economies of scale cost benefits an online/phone service by chartered people would hopefully provide a needed independent service at costs that are not excluding the market that the aforementioned paper detailed. I am all for inclusion not exclusion and independence of advice.

The balance is not to focus on the highest margin but the long term recurrent income from a value proposition that benefits.

It's not about restrictive practices I think change the rules of the game in how you work with and deliver services is a must in this industry. The Internet was a discontinuous innovation for travel agents why not for IFA practices to include those that would be excluded without the changes.

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John Invest

Apr 23, 2013 at 10:05

Also before anybody joins such an outfit and starts running their turnover through a third party check excatly what the funding arrangements of the new business are. You need to see a detailed business plan + cashflow forecasts profit forecasts etc.

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Autonomy

Apr 23, 2013 at 10:19

It must be a 'typo'. Surely that sentence should say 'IFAs will be given the oportunity to SELL their client book TO the firm if they choose to leave'. To be fair, it maybe that Mr Kelly is providing all the clients for the advisers, so newly qualified advisers who don't already have any clients are just dealing with a stream of new enquiries and doing none of the 'leg work' themselves.

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Neil Chamberlain

Apr 23, 2013 at 10:20

Oh and I think it states in the article that equity will be given for client banks so if you leave you can buy you clients back. This is fair isn't it. The company buys your clients off you with equity which you have agreed to and then if you want to leave your given the option of buying back. So the consideration is you have made money with your initial investment unless the company is unsuccessful.

You own the company by investing your client bank. It's therefore a joint effort to make the company succeed or am I missing something?

@ man in Black Porter can be helpful when considering the competitive environment and planning hopefully game changing services. I think we will see a lot in the next couple of years with DIY and online propositions. The art is getting it right and of value to the market.

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Bob Donaldson

Apr 23, 2013 at 10:24

Yes but do the clients actually want to join a new firm. My belief is that clients deal with an advisor not the firm. It is that long standing relationship of trust that is built up over the years. A straight handover/sale of clients to a new business regardless of whether they are chartered or not is a quesionable matter.

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Philip Stevenson

Apr 23, 2013 at 10:31

Hmmmm! Come and join us bring your clients with you and if you don't like it don't worry we'll let you buy your own clients back from us. I await the phone call.........NOT

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Jun Merrett

Apr 23, 2013 at 10:46

Hi All,

I got the information on the client buy-out from the Alexander House website: http://www.alexanderhousefs.co.uk/#!about-us-advisors/c12ox

The exact wording is: ‘We will help anyone who wants to become a chartered advisor and facilitate you to buy out your clients at a later date if that is what you want.’

I understood this as buy your client bank back but appreciate it could also mean the firm would buy the adviser’s client bank.

No one at Alexander House was available to comment or clarify this point at the time of going to press.

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Neil Chamberlain

Apr 23, 2013 at 10:46

Yes clients deal with an adviser that's where the relationship lies. So where you are in business is where they go. No one owns clients but the contractual considerations of future income is something that you the adviser as a business has to consider. Is it right for you and your clients. If not that's your answer. It's a business decision. As advisers you should all understand risk and reward and this firm is providing you with an investment opportunity. You either think it's a good idea or not. It's a decision.

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Ian Lees

Apr 23, 2013 at 11:05

Was it ever going to be THUS ! . . . With So many Agents ( IFA's and Tied ) being thrown out by an incompetent Gov't under the Reduce and Destroy Review ( RDR ) advisers . . . and small businesses put out of business and their employees thrown on the scrap heap of life . . . whilst the bankers are re employed by FSA/FCA and FoS - to protect their incompetence . . . .those stupid fools in Gov't have no idea how to run a business . . .let alone a country. I was amazed to see the wet wipe Cameron claiming Nurses had to be " further trained ", to offer nursing services - whilst his colleagues ran the Death Camps at the NHS Trusts. I suppose we should be grateful that unlike Maggie Thatcher who groundthe miners into the ground with the aid of Police on horseback - can we expect the same attacks on the nurses and their unions ? Cameron's failure as an MP is only superseeded by his incompetence as Prime Minister, his lack of statesmanlike quality . . . shows he is more like " a wet wipe", than any politician. Clearly the training at Eaton, truly is a " mess", and does not fit with any trianing required for office - especially one of the state.

Only a fool would find a way fix . . .something which is not broke ! Only a con servative fool would play around with the lives and life savings of the voters - who apparently elected him ( but not in any excess ). Whilst pickles starts to degenerate our green belt land . . . . . I assume becuse of the bungs and backhanders from his playmates ( some of whom I think he has eaten ) or possibly Eton ? No wonder no one wants to purchase the deprived funds of auto enrolment - or the desire of Flossie Osborne to use pension money to fund " infrastructure schemes ", becuase he and his party are bankrupt and UK Plc is decomposing. Financial Advisers deprived of their earnings - and the destruction of small businesses - is the way for a conservative party line. Bank of Scotland refuses to provide banking services to " Micro Businesses " defined by the bank as being less than £ 2 M in turnover ( Yes ! £ 2,000,000 in turnover ). That should help people like Nick Kelly build bigger companies .- Good luck to him.

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Graham Bowser

Apr 23, 2013 at 13:49

Men in white coats have been dispatched

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c.nicol

Apr 23, 2013 at 14:21

I hope Ian Lees is top of their list.

This is what happens when your retire without a hobby , other than blogging.

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Dan Rear

Apr 23, 2013 at 14:29

He could try a spelling course as a hobby...

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Jane Hodges- Alexander House FS

Apr 23, 2013 at 15:31

Just to put the record straight. I am COO of Alexander House and no-one has approached me to ask anything about our proposition. I would have been pleased to share with them, as I think we have an amazing new business which I am happy to tell anyone about. The Management team, who aren't announced yet, contrary to this article, want to build a new business that is fair and open to customers and advisers alike, that rids us of our pre RDR advice issues and has traditional values; modern thinking and transparent advice. If Jun would like to contact me I will be happy to help her put the record straight as have no idea where she is getting some of this from.. If you want to know more please go to our website or contact me direct. We will build a great business, with everyones' interests at heart and would love to hear from anyone who wants to work with us. If you don't, that is fine, we have 20% less advisers in the industry, no bankassurers left to speak of and a population of ever aging customers who need more help than ever and are turning to self-service as alternative to advice. We all need to get behind this industry and get on with and I wish everybody else's business all the best and hope we are all successful.

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Ian Lees

Apr 24, 2013 at 08:15

Out of Retirement . . .I see even the, the, the Co Op ( who claim . . ."are good with food "- and do Funeral Plans ) . . have rejected the opportunity to purchase 600 TSB branches and their customers . . . from the Edinburgh Based Bank ( AGM in Glasgow in May ) LloydsTSB Group . . . prior to devolution . . .? What next another foray by the Scots as far as Derby . . .by the Boney prince of Polly ticks - Alex Salmond and mistress Sturgeon ?

Given the high levels of claims against the selling practices, the fines ( paid for by the taxpayers ) . . . of this nearly . . . .. . . nationalised bank . . . . one can see why it may not seem appropriate for the good memebrs of this mutual society . . . . . . .the Co Operative Society. Some companies prefer to act ethically and morally - whilst the Group TSB and their subsidiary Blank of Scotland ( Blankety Blank of Scotland - cos they are insovent ) charge 23% on overdraft interest whilst Moneyfacts report the average to be only 15% I.E 14.5% above the Bank of England base rate. The Gov't has handed out even more money ( by cheque I assume ) to the banks to provide cash for businsses. This will not include Group LloydsTSB customers of the Blankety Blank of Scotland who has iddentified Micro Businesses as being those with turnover of less than £ 2 M - and who are removed form all banking services. Perhaps Mr Osborne could explain this ?

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c.nicol

Apr 24, 2013 at 16:53

@ian lees; you have clown reserved

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Ian Lees

Apr 24, 2013 at 17:19

@c.nicol .. . thank you for those few kind words. As a clown I will not be joining your little " c" for circus . . or maybe it is just the circus ring of contempt.

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Michael Mason-Mahon

Jun 05, 2013 at 12:03

Has the Head of Customer Relations at HSBC made a fool of the new FCA??? Surely not???

Is there any difference between the old FSA & the new FCA?

Head of Customer Relations for HSBC Holdings Plc writes (go’s running and crying Please help us stop these bad men saying bad things about HSBC, it upsets my Chairman. Big joke) to the FCA saying "given the history of both customers, and previous approaches to the FSA they well contact you to complain about the decision we have made".

Did Head of Customer Relations at HSBC tell the TRUTH the whole TRUTH and nothing but the TRUTH to the FCA???????????

It has been 55 days since the FCA received the letter from HSBC, did the FCA contacted the people name in the letter????? No. No No No Nooooooooooo

Has HSBC TOLD THE WHOLE TRUTH to the FCA (O' please get real; this is the HSBC Group, that have been committing illegal behaviour around the world for the last TEN YEARS) why would they tell the truth?

Mr Griffith-Jones do you not think the FCA have a duty to contact people concerned and let them defend themselves, also for the FCA to find out what is the real truth?

May be too much to ask of the FCA?

Mr Griffith-Jones as the Chairman of the FCA what will you do if HSBC and the Head of Customer Relation have not been telling the FCA the whole truth?

Please tell us Mr Chairman, what is the REAL DIFFERENCE between the FSA & the new FCA?

Can the public afford to TRUST the new FCA?

Michael Mason-Mahon

Mobile: 0044 7834763544

Mobile: 0044 7448770801

E-mail: ckmdm@aol.com

"First they ignore you, then they ridicule you, then they fight you, and then you win."

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