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Tenet posts £4.5m loss and reveals PwC settlement

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Tenet has reported a pre-tax loss of £4.5m for 2012 and revealed it settled with PricewaterhouseCoopers over a £2m claim relating to collapsed network Berkeley Independent Advisers.

The network has made a much bigger loss for the year to 30 September than the previous year, when it posted a pre-tax loss of £290,809.

Tenet set aside £4.5m during 2012 to cover the cost of Arch cru and Keydata redress, first revealed by Money Marketing earlier this month.

The network’s total gross claims provision now stands at £9.1m, including £6.6m set aside in previous years.

Tenet’s results also reveal that in December the company agreed a settlement deal with BIA administrator PwC over the purchase of adviser contracts.

PwC took legal action against Tenet last October, arguing Tenet owed over £2m under the terms of sale and purchase agreement, which Tenet disputed.

Tenet has not revealed how much it settled with PwC for, due to a confidentiality agreement.

Thameside Wealth director Tom Kean says: “The size of this loss must be a huge blow to all connected parties. It also illustrates the downside of the network model: although the small IFA, directly authorised model is considered by many to be a cottage industry, it does mean we are autonomous and masters of own destiny.”

BIA is also at the centre of a High Court ruling which could change the way the Financial Services Compensation Scheme assesses advice. The FSCS lost a High Court appeal last week after a judge ruled a BIA client should be compensated for her total losses, including those relating to an unregulated Spanish property purchase, rather than partial losses relating to unsuitable mortgage advice.

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  1. Yet another restructure on the way, no doubt more cuts to services and the resulting loss of jobs amongst tenet staff will follow this worrying performance.

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