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.”