Tenet says its business would have been hit a lot harder by Lifetime’s restructure if take-up of the platform had been stronger.
Group chief executive Simon Hudson says the platform has taken much less money than the £40m or £50m he would have predicted.
Norwich Union is undergoing a very public repair job to Lifetime following its move from Cambridge to York and has recently announced its closure to new business.
Lifetime was the first of the platforms that Tenet selected to be offered through its wrap proposition Clear, which launched at the end of 2005.
Clear is a series of risk-modelling tools and educational aids on wrap and platform. The panel of platforms includes Standard Life, Cofunds and FundsNetwork, with Lifetime proving to be the least popular of the offerings.
Hudson says: “We are supposed to be encouraging a move towards being these new model advisers, away from commission and towards fees, but it has not been as effective as we would have liked.
“Clearly, the platform is having its problems but, as it happens, we have not really been affected anyway. There are only a couple of million pounds on there whereas we would have thought there would be around £40m or £50m by now, if it had been used as heavily as we would have thought.
“There are alternatives being offered through Clear, so their loss is the gain of those other platforms.”