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Shareholder slams Tenet after missing out on deal

A former Tenet Group adviser has slammed the firm for not giving him the chance to sell his stake when 7 per cent of the business was recently sold to four life offices.

Last week, Money Marketing revealed that Standard Life, Aegon, Aviva and Friends Provident had bolstered their collective stake in Tenet from 83 per cent to 90 per cent. Each insurer now has a stake of just over 20 per cent. But former Tenet adviser Ian Gotts has attacked the firm for not offering him the chance to sell his shares as part of the transaction.

Gotts paid £50,000 for 500,000 shares in 2000 and is desperate to sell his stake, which he believes could be worth £500,000, after a car accident forced him to take early retirement. He left Tenet in 2008.

Last week, Tenet said the inc-rease in the life offices’ collective stake reduced shares belonging to management but would not confirm which directors had sold their shares.

The board includes Conservative Lord Hodgson of Astley Abbotts and chief executive Simon Hudson.

Gotts says: “I had to pack in work due to ill health but I am unable to sell my shares. Why have they given special preference to directors and not normal people? I am in a situation where I am disabled and was hoping to enjoy the benefits of a long-term investment. Why was this transaction not open to the rest of the market? It is grossly unfair and they know it.”

A Tenet Group spokesman says: “While we have sympathy with Ian’s position regarding his shareholding, we are unable to provide any further comment beyond that already given as this was a private transaction.”

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  1. The Silence of the Networks

    If an IFA’s business has income of say £100K 50/50 initial and trail and a Network takes 15% then the Network earns £7,500 on initial and £7,500 on trail i.e. £15K per IFA member.

    If as AVIVA predicts, 50% of IFA’s are binned post RDR 2012 then the Network with lose the 15% on initial but gain 100% on trail i.e. the entire trail reverts back to the Network so instead of earning just £15K they then take 100% of the trail i.e. the Network gains the former IFA’s £50K trail. Not a bad swop £15K for £150K? As a Network director would you vote against that? This is a regulatory gift!

    Now do you understand why we have heard so little in the way of RDR objections from some Network directors! Like an IFA practice a Networks market value is based on trail income. Note the recent buyout of a certain Networks shares as their former directors retire rich on the back of RDR by selling shares to product providers who perhaps seeks future tied or restricted advice distribution!

    The Network member is ‘stitched up like a kipper.’

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