View more on these topics

Tenet allocates £4.5m for compensating investors over Arch cru and Keydata


Tenet has set aside a total of £4.5m to cover the cost of compensating investors under the Arch cru redress scheme and its settlement with the Financial Services Compensation Scheme over recommending Keydata products.

The company has not provided a breakdown of how much of the provision relates to Arch cru and how much concerns Keydata, but says Arch cru represents the “larger part” of the money it has set aside in its annual accounts for the year to 30 September 2012.

Speaking to Money Marketing, Tenet group finance director Caroline Bradley says: “Tenet has made an exceptional provision in its annual accounts of £4.5m. While we have £24.4m of cash held on the balance sheet, for us this is a significant provision for a group of our size.”

She says the different provisions for Arch cru and Keydata reflect the group’s different approach to the investments.

Bradley says: “We gave very restricted approval to a handful of appointed representatives for Arch cru, whereas Keydata was not generally approved by us. However, a handful of ARs did conduct limited business.”

Tenet is not expecting to set aside more money in future in relation to Arch cru and Keydata, saying it believes its current provision is “sufficient”.

Tenet’s full report and accounts will be available next month after shareholders have seen them at the company’s annual general meeting at the end of June.

Plan Money director Peter Chadborn says: “It will be interesting to see how Tenet’s provision sits with the undisclosed amounts set aside by other networks.

“I would question whether more than a ‘handful’ of ARs recommended Arch cru and Keydata given that £4.5m has been set aside.”


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Yet another one off event as to why Tenet have not made any profits.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm