View more on these topics

Life offices increase stake in Tenet to 90%

Standard Life, Aegon, Aviva and Friends Provident have bolstered their collective stake in Tenet Group.

Standard Life, Aegon, Aviva and Friends Provident have bolstered their collective stake in Tenet Group from 83 per cent to 90 per cent, reducing the management’s share in the business to 10 per cent.

Aviva and Friends Provident paid £9.5m each to take 9.9 per cent stakes in the IFA firm in 2002, while Aegon bought a 9.9 per cent stake in August 2004.

In 2005, these firms exercised options to increase their respective stakes to around 20 per cent. Later that year, Standard Life also took a 20 per cent share in the business in its first foray into distribution ownership.

A Tenet Group spokesman says: “A private transaction between our four provider investors and some shareholders has resulted in the providers each increasing their stake in the business by between 1.5 per cent and 2 per cent. This has increased to 90 per cent. The remaining 10 per cent share is owned by management.”

In March, Standard Life acquired support services firm Threesixty. Aegon owns Positive Solutions and Origen Financial Services and Friends Provident owns Sesame Bankhall but sold off Pantheon Financial in March.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. This is as predicted and why Tenet members have see so little anti RDR rhetoric from the directors of Tenet. The truth being that RDR suits their business model. At first they hoped for the multitie but now RDR has come to their rescue! It works like this: The value of a an IFA business is in the trail fees and of course if half of their members disappear as a result of RDR (as predicted by AVIVA, Scottish Widows, Ernst & Young etc etc) then this trail fee reverts back to the Network unencumbered by their former members. Hey presto the value of the shares increases, buyers are found.

    The directors are now rich and mere employees of the Network well out of it and the life offices now have a captive client base that they could not achieve through quality products and independent product choice. Makes the IFA look like a Patsy but it does rather fit a pattern don’t you think? How long will it be post 2012 until we see Tenet as a “restricted adviser” and that restriction being applied to the new ownerss?

  2. I agree with the above comments – buying distribution for the post RDR world?

  3. this is just a way round comission bias, i bet there will be a significant number of Standard Life, Aegon, Aviva and Friends Provident contracts sold and not as it should be the right product for the right person…..watch this space!

  4. The light is beginning to dawn. I have been saying this for years. Just wait for restrictive contracts guys.
    If Tenet or any other IFAs want a lucrative way out I suggest that they contact us at Myddleton Croft to discuss matters with someone who isn’t out to ‘leg them over’.

Leave a comment