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Tenet members’ anger over compliance checks and run-off cover

Members charged for file checking amid complaints they are being deliberately priced out

Network members have attacked Tenet amid growing frustration at the way in which compliance checks are carried out and concerns over the introduction of mandatory run-off PI cover.

Speaking on condition of anonymity, Tenet members have told Money Marketing how the network repeatedly requests file information, as part of compliance checks, that has already been submitted. One adviser said the network had “lost the plot” in its interactions with advisers.

Of the five Tenet members contacted by Money Marketing, all said that they were unhappy with their current experience with the network.

Where the adviser has had repeated compliance issues, Tenet is imposing a £100 charge for each case that needs to be file checked, with some advisers on 100 per cent file checking for certain types of business.

Tenet says only five members are being charged for file checks.

Tenet group brands director Mike O’Brien says: “If any member does not want to play by the rules, it is difficult for them to be part of the network. If you can’t meet our standards, exit may be the only option.”

Separately, members have raised concerns about the way  in which Tenet rolled out its mandatory run-off cover in June, which adds 1 per cent to members’ PI premiums. Tenet offers insurance through its subsidiary Paragon.

One member estimated it would cost £8,000 to buy run-off cover from Tenet if he chose to leave.

O’Brien admitted its communication about run-off cover was unclear and was aware members were under the false impression it was compulsory to buy run-off cover from Tenet when they leave.

TenetConnect, the investment advice arm of Tenet, has 940 members. Tenet declined to comment on the number that had left over the past year.

Aurora Financial Planning chartered financial planner Aj Somal says: “The fact members are having to submit information twice shows the inefficiency of a large network. One of the reasons I became directly authorised was so I would have more control over my business.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Only last week Poss Sol asked some members of the network to leave due to poor compliance or low production, as I and many other believe this is the start of Networks getting rid of high risk IFA’s.
    Networks have now been told their major shareholders (Major Providers) to start making profits.

  2. How can ARs insure the liability of their sponsoring firm?

  3. A large part of the conflict between the networks and their AR’s is due to the former having adopted a policy of treating the latter as if they’re errant and incompetent employees who can no longer be trusted to anything properly and who must therefore be micro-managed at every level and in everything they try to do, with bullying threats of sanctions if they refuse to conform. Anecdotally, Tenet seem to hardly any worse than any of their rivals, all of whom just shug their shoulders and blame it on the FCA.

    Being DA is tough enough but these days being a member of a network seems to have become even worse. Currently, a spate of network hopping seems to be going on, though I doubt if any are able to offer a less oppressive haven than any of the others. Perhaps DA will come to be perceived as the lesser of two evils and the networks will lose so many members that they’ll cease to be viable commercial enterprises. The redundancies have already started.

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