Nearly 100 Jobs Lost as Financial Advice Group Tenet Calls in Administrators

The once-thriving financial advice network, Tenet Group, has fallen into administration, resulting in the loss of 95 jobs. The collapse of this £121 million revenue firm, headquartered in Leeds and known as the UK's largest independent financial adviser network, marks a significant setback in the financial services sector.

Administrators were appointed to oversee the wind-down of Tenet Group Limited and its subsidiaries, including TenetConnect Ltd and TenetConnect Services Ltd. While 52 staff remain temporarily to assist with the closure, the remaining 95 roles have been unfortunately made redundant.

Over recent months, Tenet had been gradually winding down its operations, selling off parts of its business and transferring its network of independent financial advisers to other firms like 2plan Wealth Management Limited. Last year, TenetLime Limited, which handled mortgage and protection advisory services, was sold to LSL Property Services, and just last month, the national independent financial advice practice, Tenet & You Limited, was acquired by My Pension Expert Limited.

The collapse of Tenet has also triggered concerns with the Financial Services Compensation Scheme (FSCS), particularly regarding past business reviews into defined benefit pension transfer advice provided by TenetConnect Ltd. The FSCS has indicated that affected customers may be eligible for compensation but cautioned that the process could take several months as they gather necessary data from the administrators.

In response to the developments, the FSCS stated: "We’re aware that a number of customers were due to be contacted as part of a past business review into defined benefit pension transfer advice. This advice was given to these customers by appointed representatives who were under the regulatory responsibility of TenetConnect Ltd."

They further added, "FSCS is not open to claims against TenetConnect Ltd while we obtain, secure and organise the data provided about past business reviews, which in our experience is likely to take several months."

The ramifications of Tenet's collapse extend beyond job losses, affecting stakeholders, clients, and the broader financial services community. The company, once a cornerstone in independent financial advice, now faces a challenging road ahead as administrators work towards an orderly closure.

As financial regulators and administrators navigate through the aftermath, the industry watches closely, hoping for a swift resolution to mitigate further impact on customers and employees alike.

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