Tenet Group falls into administration as FSCS launches investigations

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A Leeds-based financial advice firm has appointed administrators after Tenet Group Limited and its subsidiary firms Tenet Limited, Tenet Connect and Tenet Connect Services collapsed yesterday, June 5th.

As a result of this, the FSCS have now opened an investigation into the firms. The FSCS have said that the FSCS is handling the failures of TenetConnect Ltd and TenetConnect Services Ltd together, but as both firms were authorised under their own FRN, there are two separate failed firms pages on their website.

Tenet Group

TenetConect Limited have issued a statement on their website to inform their clients that the firms directors appointed Ed Boyle, Howard Smith and Rob Spence of Interpath Ltd as Joint Administrators of Tenet Group Ltd, while Ed Boyle and Rob Spence were also appointed as Joint Administrators of its subsidiary companies Tenet Ltd, TenetConnect Ltd and TenetConnect Services Ltd.

The announcement comes after Tenet Group said it was ‘winding down its operations’ last year, after suffering several years of large-scale losses.

Smith, managing director at Interpath and joint administrator of Tenet Group Limited, said:

“We’re now focused on winding down the business, and we are in contact with the FCA, FSCS and stakeholders to ensure an orderly process.”

Interpath said that the group has “substantially wound down its operations” by selling various businesses and by transferring out of its network of independent financial advisers.

Meanwhile, other subsidiaries of the business, Tenet Mortgage Solutions Limited (TMS) and Tenet Compliance Services Ltd have ceased to trade but these entities have not been placed into administration. Similarly, Tenet Financial Services Limited (TFSL) has ceased to conduct regulated activities and has not been placed into administration.

Tenet Employee Benefit Solutions, a non-regulated service within TFSL, continues to operate as normal.

I’m a Tenet Group client – what do I need to do?

Tenet Group’s website states that customers “should continue to liaise with their financial advisers, the vast majority of whom continue to operate as normal”.

However, the Financial Services Compensation Scheme (FSCS) has said it is aware of a number of customers who received pension transfer advice from TenetConnect, and these customers may be eligible to claim compensation.

The FSCS website states:

“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.

“These customers may be eligible to claim compensation from FSCS. We’re working closely with the Joint Administrators to secure data to help us work through these potential claims without customers needing to contact us.

“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.”

I received advice to transfer my pension, what should I do?

The FSCS website says that if you received advice to transfer your defined benefit pension from Tenet or one of their appointed representatives you don’t need to take any action. The Joint Administrators will write to you directly in the coming weeks, and you will then be contacted by the FSCS with further steps to take.

I think I’m owed compensation for something other than a pension transfer – can I make a claim?

The FSCS has said it is not open to claims at this time, however, they are working with the Joint Administrators to identify customers who may have a claim for compensation and will contact those customers directly once we have their details.

Complaints against Tenet Group

Tenet Group and its subsidiaries has had 30 complaints upheld against it by the Financial Ombudsman Service since the start of last year. Twenty-seven of the complaints relate to TenetConnect Ltd after clients suffered financial losses after receiving financial advice from TenetConnect’s advisers.