Tenet to charge to approve drawdown cases

Mike O'Brien 2

Tenet is charging advisers £150 to carry out file checks on drawdown cases.

TenetConnect, the investment and pensions division of Tenet, says it has seen an 86 per cent increase in drawdown cases between April and September.

The network requires a pensions specialist to assess whether a drawdown recommendation is suitable before the sale.

Tenet previously absorbed the cost of file checking, but says due to the increase in demand it will now charge £150 a case for this service.

Advisers will exempted from the charge by completing a series of Tenet-devised case studies, after which point they will not have to have cases signed off by a specialist.

Tenet Group brands director Mike O’Brien estimates a quarter of TenetConnect’s 1,300 advisers will now have to decide whether to take the competency tests or face charges.

He says: “Tenet has an obligation to ensure it has the facilities in place to satisfy regulatory requirements and those introduced with no transition period have an immediate effect on resource.

“We’ve therefore had to increase our spend in particular areas of support and the new charging structure will ensure that the network continues to operate successfully.”