Tenet is acquiring all Merchant House’s 70 advisers in a deal that will see them join Tenet appointed representative firm Aspire Financial Management.
Tenet has also acquired certain business assets of Merchant House Financial Services, which has been an appointed representative of Tenet since 2011, but has not disclosed details of the assets.
MHFS parent company Merchant House Group cancelled trading on the Alternative Investment Market in November after the company failed to raise sufficient funding.
In February, it emerged Tenet has taken out a debenture against MHFS. Outgoing Tenet distribution and development director Keith Richards said at the time the charge relates to a historic business development loan, and that given the issues at Merchant House Group it made sense to formalise the loan.
Tenet managing director Mike O’Brien says: “This is not the first time we have provided this type of support and it demonstrates one of the major benefits of being part of a well-established and financially secure network.”
Consilium Financial Planning managing director Kevin Morgan says: “This is a good move by Tenet. It is no fault of the Merchant House advisers that the business has gone under and they deserve the right to be able to earn their livelihood.”