The network set aside £7.4m at the end of 2011 to provision for complaints payouts - down from £8.4m at the start of the year.
The 517 complaints upheld in 2011 relate to advice over many years and represent a small proportion of the business written by members.
Turnover in 2011 meanwhile was £170.3m up from £162.9m but the network saw a 4% fall the number of mortgage and general insurance advisers.
Sesame said the majority of advisers who left last year either left the industry or were unable to meet the “stringent demands” required in order to remain in the network.
Sesame put the loss down to “huge investment” in its infrastructure and new services for members to position the company for the new RDR world.
The network also said its regulatory surplus was £22m and “demonstrates our strength and ability to invest in the future”.
Sesame Bankhall Group, the network’s parent, generated profits of £2.2m in 2011.
Sesame Bankhall Group CEO, George Higginson, said: “We have been very clear and consistent from the outset that the delivery of our long-term strategy would impact on our short term profitability.
“Our strategy is on track and is helping to put Sesame and its members in the strongest possible position going forward.”
