Misys unveils blueprint for future of IFA business - and opens Sesame
- All IFA businesses brought together under new Sesame Group brand
- Five existing networks (Countrywide, DBS, Financial Options, IFA Network and Kestrel) to become a single, regulated network called Sesame
- New network pricing structure to deliver better value to member firms
- Plans on track for flotation of Sesame Group next year
- 10% of the equity value of Sesame Group to be allocated to member firms
Misys plc today outlines a blueprint for its IFA related businesses, which will be brought within the newly-created Sesame Group. The blueprint is aimed at improving the quality and value of services provided to member firms, who are at the heart of the UK life and pensions industry.
Misys announces that it will create a new, single regulated entity which will replace the five existing Misys-owned networks – Countrywide, DBS, Financial Options, IFA Network and Kestrel. The Sesame network is expected to begin operating on 1st August 2003, subject to approval by the Financial Services Authority (‘FSA’). It will be the largest IFA network in the UK with a market share of around 25%.
Members of the Sesame network will benefit from a new pricing structure. The new structure will reduce the price of membership for the majority of firms. The pricing structure will come into effect on 1st August 2003, after the statutory notice period within members’ contracts. All network members will also receive Sesame’s research material free of charge.
Misys plans to demerge and float the Sesame Group in the second half of next year. 10% of the equity value will be reserved for IFA member firms and distributed to members to enable them to benefit from the growth of the Sesame business. The mechanics of the distribution will be determined nearer the flotation date so as to optimise the value of the transaction for all stakeholders. However, it is anticipated that a date of record will be fixed, in advance of the flotation, and all firms that are Sesame network members on that date will be eligible to benefit from the distribution. Further details will be outlined early next year.
Kevin Lomax, Chairman of Misys plc, said: “Sesame will be a superior IFA support services business fit for the 21st Century. We will build Sesame by offering IFAs a high quality service and great value for money, and by ensuring that they share in the company’s success. IFAs are the backbone of the UK life and pensions industry and, through Sesame, our mission is to enable them to run their businesses very successfully. ”
Patrick Gale, Chief Executive of Misys Life and Pensions, will become the Chief Executive of Sesame Group when it is launched on 1st August 2003, subject to FSA approval.
Patrick Gale added: “We have assembled a strong management team and together we are very excited about the opportunity we have to build the Sesame business. We can only succeed if we deliver a service which our members continue to trust and value, something we are confident we can do.”
Commenting on why Sesame was chosen as the new name for the business, Patrick Gale said: “After extensive research among our member firms, product providers and our staff, we believe the Sesame identity encapsulates openness, trust and professionalism.”
Paul Smee, Director-General of the Association of Independent Financial Advisers, commented: “At a time of great challenge for all IFAs, this is a welcome vote of confidence in the future of independent advice. It is particularly interesting that individual businesses will be able to benefit from the growth of this new brand.”
The Sesame Group will include:
- Sesame, the network which will replace the existing five IFA networks owned by Misys – Countrywide, DBS, Financial Options, Kestrel and IFA Network
- Sesame Direct (currently Misys Regulatory Services)
- Sesame Mortgage Services (currently Misys Mortgage Services)
- Sesame General Insurance Services (currently Misys Assured Services)
- Sesame Desktop Services (currently Misys IFA Desktop Solutions)
- Sesame Protection Services (currently DBS Protection Services)
- AssureWeb
More information on Sesame can be found at www.sesameuk.co.uk
For further information:Paul Charles, Head of Communications, Misys plc
07769 880991 (m)
paul.charles@misys.co.uk
About Misys plc
Misys plc, the global software products and solutions company, serves customers in the international banking and securities, US healthcare, and UK retail financial services sectors. Misys partners with its customers to deliver outstanding IT solutions to essential industries. For the year ended 31 May 2002, Misys reported revenues in excess of £1 billion. Misys employs over 6,500 people internationally.
Misys plc, the global software products and solutions company, serves customers in the international banking and securities, US healthcare, and UK retail financial services sectors. Misys partners with its customers to deliver outstanding IT solutions to essential industries. For the year ended 31 May 2002, Misys reported revenues in excess of £1 billion. Misys employs over 6,500 people internationally.
- Sesame will replace the existing five Misys-owned networks – Countrywide, DBS, Financial Options, IFA Network and Kestrel.
- Misys expects to give another update on the flotation in early 2004.
- More information on Sesame can be found at www.sesameuk.co.uk
