Tenet Network appointed representative (ARs) advisers who are not writing enough new business are being released / terminated from the advice network as part of a new ‘quality drive’.
Tenet is introducing tougher measures for new and existing ARs, and those that cannot meet these standards – including a new turnover threshold – are being let go.
The firms being let go are unable to meet new quality standards, have such low business levels that they are not viable for Tenet Network Services to service appropriately, or have other business interests and are not fully engaged in their advice business.
The firms being released from the network have been informed and it is understood most of the advisers have been given around four months’ notice.
Tenet said it is in discussions with the firms about alternative options. It is understood these include going directly authorised or self-employed, joining another member firm, or introducer arrangements into Tenet’s in-house national advice arm, Tenet&You.
Tenet said it has introduced the quality drive in response to the FCA’s new AR regime and Consumer Duty regulation.
The move is similar to a productivity drive undertaken by rival Quilter over the past few years, which resulted in 141 advisers leaving Quilter’s network in the first six months of last year.
Tenet refused to confirm how many firms in total have been affected, but said it is a ‘small number’ and that the move is ‘in line with industry peers’. The business also refused to confirm what constitutes ‘low turnover’ or what the average turnover of firms being released from the network is when asked by Citywire New Model Adviser.
Tenet has already seen a number of advisers leave in recent months: 19 firms across its financial adviser arms, Tenet Connect and Tenet Connect Services, have left the network since January, according to the FCA Register. Tenet currently has 448 ARs, comprising 243 across its financial adviser arms and 205 in its mortgage adviser arm Tenet Lime, according to the FCA Register.
It is considered that the Tenet Network is a worst mortgage network in the UK.
Exceprts from By Laura Purkess24 May, 2022
Source: Tenet cuts low turnover advisers from network in ‘quality drive’ – Citywire