By Katey Pigden 4th August 2021 8:47 am
Life Insurance broker Protect Line, has walked away from the Tenet Network to become directly authorised, Money Marketing has learned.
Tenet said it was sorry to see the firm leave but wishes it “every success for the future”.
The exit has sparked concern among some advisers about Tenet’s position.
Poole-based Protection Line became an authorised representative of Tenet in August 2015, having previously worked with Sesame.
It has decided to go it alone after a strong performance last year. Protection Line recently hinted at the move when it announced the appointment of Pedro Coimbra Fernandes as chief financial officer.
In May, the insurance broker said it grew revenues by 13% in 2020 to £20.4m, while its headcount had reached 270.
Protect Line was established in 2010 by husband and wife team, David and Jo Brewer. It now operates from offices in Bournemouth and London.
The firm confirmed to Money Marketing it has become directly authorised and has left Tenet.
The Financial Conduct Authority’s register also shows it received authorisation on 30 July. Protect Line currently trades under six names, according to the regulator’s register.
In addition to Protect Line, it also lists Compare the Quote, Quick Quote Expert, Quote for Dads, Quote for Mums and Protect Line Ltd.
Records on the FCA website also show Protect Line is no longer registered as an appointed representative for Tenet, as of 30 July.
While Tenet highlighted Protection Line’s growth made sense for it to become directly authorised, some advisers have suggested the departure will be a blow for Tenet.
A spokesperson for Tenet told Money Marketing: “Protect Line has grown and achieved great success under our network”.
But several advisers have hinted the exit seems a continuation of the “exodus” the company has witnessed.
The firm has previously faced a backlash from disgruntled advisers who experienced problems as a result of the technology migration to Intelliflo’s Intelligent Office (IO).
Some advisers have gone as far as to question whether Tenet’s network model is working and whether it plans to change strategy to become a national.
The spokesperson added: “Last year we simplified the business to focus on our core businesses to ensure we are well-positioned to continue to be the UK’s largest network supporting independent financial advice. We now have three core lines of business: Tenet Network Services (which incorporates the financial advice and the mortgage and protection advisers), Tenet Compliance Services and Tenet&You.
“In 2019, we divested Sinfonia Asset Management to Tatton Asset Management Plc and transferred the group’s white label platform to Hubwise as part of this strategy.”
Tenet&You, is the group’s practice buyout programme. Tenet said it can support advisers into retirement and gives their clients continuity.
Tenet added that it has received positive feedback from members about the switch to IO,
which took place in September 2019.
The firm outlined the cloud based technology enabled advisers to “work remotely and service their clients seamlessly from home during the pandemic”.
“We’re seeing excellent levels of customer usage with the IO system now embedded across the business, with all members using the system and some 95% of network members now successfully using the wider capability of the system.
“More than a third of our members are making use of value-added components such as the personal finance portal and in-built video conferencing to communicate securely with their clients as well as the valuation functionality,” the firm told Money Marketing.
Tenet pointed to its strong capital and liquidity positions, “comprising of cash and cash equivalents of £27.5m and regulatory cover of 262%”, in response to suggestions from some advisers that the company is in a bad position.
The spokesperson added: “We have ambitious plans to grow all three core businesses and are on track to invest £10m on IO over the next few years.”
Around a further £1.5m was spent on the firm’s in-house technology in the last year to ensure it has a strong platform for future growth.
“We now have a dedicated technology support team and software development capability to better support our members. In an increasingly digital world, we need to create a more modern customer experience for the member firms.”
An industry insider said: “It’s an increasingly digital world and you can’t grow without technology, the change might be painful for some, but you need to embrace new tech opportunities.”
By Katey Pigden 4th August 2021 8:47 am
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