An "explosion" in regulatory costs is becoming a "huge problem" for networks and national advisory businesses, according to a director at Lighthouse Group.
Network and support service provider Sesame Bankhall Group (SBG) has said a large number of its 2,800 member firms are considering a 'hybrid' practice - offering both independent and restricted advice.
Advice firms should not become fixated on remaining independent, network and support service provider Sesame Bankhall has said.
Sesame has blamed claims management companies (CMCs) for a near-100% rise in the number of complaints against it being referred to the Financial Ombudsman Service (FOS).
Sesame Bankhall Group chief executive George Higginson has warned the advisory community it risks having further unwanted reforms thrust upon it if it does not better represent itself.
Sesame will make a restricted proposition available to members from the middle of next year, built around its own platform and newly-created investment management arm.
The Financial Services Authority (FSA) has issued a warning to investors about a business trading under the name of a former appointed representative of network Sesame.
Sesame is to offer members the option of paying their FSCS interim levies over two years via an interest-free loan.