Last August, Tenet made the decisive announcement to close its mortgage and protection business, as well as financial advice networks after incurring significant losses over the past few years. The move resulted in almost 100 job losses and both TenetConnect and TenetConnect Services have now fallen into administration.
Ed Boyle and Robert Spence from Interpath Advisory have been appointed as joint administrators for both firms. This administrative action follows a thorough strategic review led by Deloitte in an attempt to identify potential buyers for the company. Despite a failed deal last June, the closure of Tenet's networks was pursued and since executed.
Tenet ensured that its 170 advice firm representatives were given the option to move to Openwork or 2plan Wealth Management. It then decisively sold its mortgage advice arm, TenetLime, to LSL Property Services for up a figure thought to be up to £12.9m. Tenet Compliance Services remains operational, however, the FCA have noted that this division ceased trading. Furthermore, Tenet&You was sold to My Pension Expert last month.
The collapse of the Leeds-headquartered company, one of the oldest advice networks in the UK, has led to significant redundancies. Tenet has declined to provide further comments on the redundancies and the administration process.
The Financial Services Compensation Scheme (FSCS) has stated that it is aware of a number of customers who received pension transfer advice from TenetConnect and may be eligible to claim compensation. Notably, TenetConnect has had three complaints upheld against it by the Financial Ombudsman Service this year, one of which related to British Steel Pension Scheme transfer advice.
Aegon, Aviva, and Abrdn are Tenet’s largest shareholders, with Aviva and Abrdn holding stakes between 25% and 50%, according to Companies House.
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