The independent financial adviser network Tenet Group has appointed administrators.
On its website the group has posted a message revealing Ed Boyle, Rob Spence and Howard Smith of Interpath Ltd were appointed as joint administrators of Tenet Group Limited and that Ed Boyle and Rob Spence were appointed as joint administrators of Tenet Ltd, TenetConnect Ltd and TenetConnect Services Ltd by the relevant companies’ directors on 5 June 2024.
Tenet Network Services and TenetConnect are both trading styles of TenetConnect Ltd and TenetConnect Services Ltd.
The company added that while Tenet Mortgage Solutions Ltd and Tenet Compliance Services Ltd have ceased to trade, these entities have not been placed into administration.
Similarly Tenet Financial Services Ltd has ceased to conduct regulated activities and has not been placed into administration.
But Tenet Employee Benefit Solutions, a non-regulated service within TFSL, continues to operate as normal.
According to the group, Paragon Insurance Company (Guernsey) Ltd also remains under the control of its directors and continues to trade as normal.
The group pointed out that in recent times it has been winding down its operations by completing the sale and transfer of its network of independent financial advisers and its mortgage and protection advisory network to third parties.
Last summer, it disposed of its appointed representative (AR) groups in deals with LSL and The Openwork Partnership following a strategic review.
Tenet added customers should continue to liaise with their financial advisers, the vast majority of whom continue to operate as normal.
FAQs for ARs
The group also issued responses to a number of frequently asked questions (FAQs).
In response to what former appointed representatives (ARs) of TenetConnect Ltd or TenetConnect Services Ltd, need to do regarding the transfer of clients via a novation agreement, the group clarified that if they are a former AR of TenetConnect Ltd or TenetConnect Services Ltd (“Tenet”), and have already entered into a novation agreement – then they should continue to contact the relevant product providers to ensure they continue the transfer of clients and the associated fee income/commission to their company or new principal.
It added that assuming the providers have made the necessary changes following the novation agreement, the group does not consider there will be any further action that they or Tenet will need to take.
On what happens to funds paid to Tenet that are subject to a novation agreement, the group said that if ARs signed a novation agreement with Tenet and providers have not yet switched the agencies to their firm or new principal, Tenet is likely to continue receiving payment.
It said it will be working to pay any sums received by Tenet from 5 June 2024 to the assignee – i.e. to the AR or their principal – as soon as possible.
As set out in Q1, it added it encourages ARs to liaise with the relevant product providers to ensure they transfer the clients and associated income as soon as possible to minimise further funds being sent to Tenet.
But it added that unfortunately, any funds that have been sent to Tenet before 5 June 2024 and had not yet been transferred to the assignee under the novation agreement are caught in the administration estate – meaning those funds cannot automatically be refunded under the insolvency legislation and any monies that may be owed to the AR represent an unsecured claim.
On what the administration means to financial advisers, the group clarified that other than financial advisers of TFS and TMS, all other financial advisers of Tenet entities transferred away from the group prior to the appointment of administrators.
It added should financial advisers believe they are due amounts from Tenet, then they should monitor the administrators’ website for further information in due course.
Further information for financial advisers is available at Tenet’s website in the FAQs section.
On whether ARs can still contact the Tenet customer service team, the group confirmed it continues to operate in the normal way and a helpdesk is available to assist ARs in respect of funds that have been sent to Tenet by providers from 5 June 2024.
But the group added they will not be able to assist with any refunds of monies that had not yet been sent to assignees as at 5 June 2024.
Should ARs wish to contact the helpdesk for support, they are advised to email tenet.customers@interpath.com.
For, the avoidance of any doubt, the group pointed out the customer service team is unable to provide ARs with any regulated financial advice.
And in the event ARs were receiving non-regulated services from Tenet Compliance Services Ltd, the group confirmed they will be receiving a letter from the company confirming that it can no longer continue to trade as it was reliant on the Tenet Group for wider services.
Tenet concluded by pointing out its administrators were working with the Financial Services Compensation Scheme (FSCS) in order to provide the customer records they require in order to be able to assess any claims which may be eligible for FSCS compensation.