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Tenet: Independence will not cost more

Tenet says advisers who wish to remain independent post-RDR will not see any increase in costs compared to restricted advisers.

The network says remaining independent will not be as onerous as first thought and that costs, including professional indemnity cover will not be as high as originally thought.

Tenet distribution and development director Keith Richards (pictured) says: “Following greater focus and analysis, it has become clear to the group that to maintain an independent status is not as onerous as first anticipated and from  a Tenet perspective, it does not foresee any pricing differential for support or indeed, for PI insurance.”

Tenet adds it will support both independent and restricted advisers post-RDR.

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. If Tenet does not foresee pricing differntial then its eyesight must be better than the rest o fthe industry and that of the PI insurers. They do see a big differnce. I hope Tenet are right but I am not going to hold my breath

  2. Who is going to look after the poor, your client’s children and the new starters?

  3. Around any change there will always be a variety of opinions about the short and long term outcomes and RDR is providing a fine raft of alternatives – which could be an interesting source of income for someone.
    Why don’t William Hill run a book on the eventual outcomes. Profits to be split equally between said bookmaker and the Islington Care Home for Distressed Advisers.

  4. If Tenet see roses you can bet it will be a bed of thorns.

  5. Good old Tenet. With so many in the industry actually producing real proof that costs will rise, they say it won’t.

    RDR will increase the costs of advice for the consumers and networks will put up their fees once they realise they are not going to make as much money as they did previously via the commission route.

    The other so called “unintended consequence” of RDR is that the major portion of ordinary retail consumers will desert the IFA sector purely on a cost basis as they will believe the guff put out by the banks and direct distributors that we do not pay our advisers commission.

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