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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.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Can this just be implemented unilaterally? Where does the £150 charge come from is it just plucked from the air or is it an hours work or 5 hours work.
    We have to account for our charges to our clients, there have been no discussions regarding this so how have they come up with this figure?

  2. Although I have every respect for Tenet and their staff I am not happy about this at all. We pay considerable fees to the network for these services and frankly the service levels are getting worse. Current delays are knocking on 4 weeks at times.

    I already have the dispensation via the network for drawdown so in many ways this does not impact on me to much. However many like myself believe it is the thin end of a very large wedge and possibly a push towards getting advisers to go directly authorised. Plus my understanding is this Tenet dispensation does not cover any final salary at retirement taking of benefits. Therefore if I meet a client who wants to retire early and this involves transferring DB funds the three months time limit from the trustees on the quote is nowhere near enough. Especially as Tenet can take up to 4 weeks to ‘access it’ and that is before we give recommendations to the client and have to deal with the transfer of the funds. I have had a few recently where an enhanced annuity has proved better than the residual Defined benefits on early retirement. Now with the new rules from the FCA on a transfer analysis report for each and every case even on a move to annuity purchase (talk about comparing apples and pears – what is that all about?) then the amount of disclaimers in reports has jumped considerably.

    I am not being critical of the Tenet staff here as it is difficult job and they are under great pressure. However according to the ABI the numbers of drawdown is only going to accelerate and the regulation need to be brought into the modern world. Until that happens the likes of Tenet and ourselves are only going to do everything necessary to protect our business and that means even more costs passed on to clients – which then causes the advice gap to grow even wider.

    Is that what regulation has come down to?

  3. Why do networks exist ?
    Go DA….
    It’s cheaper
    You are in control of your own destiny

  4. I have NO respect for Tenet and this just typifies their usual performance

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