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True independence for 98 per cent of Tenet network

The group distribution and development director said 98 per cent of advisers within its network have remained as independent financial advisers, despite all the noise in the market about the effect of the retail distribution review on IFAs.

Earlier this week, Tenet confirmed that 10 per cent of investment advisers had been de-authorised post RDR, although the majority of these had planned to do so - either switching their attention to non-investment business or were practising principals who in the short term have decided to focus on the day to day management of their respective businesses.

Even though Tenet has seen a 10 per cent de-authorisation figure, Mr Richards said its gross adviser numbers have seen a net increase compared to the same period last year, meaning that consolidation within the investment sector is clearly already taking place.

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He added: “We always expected the majority of advisers to maintain an independent status, though it is possible that this position may alter over the coming months and years as advisers evolve their business models.

“It should always be the adviser’s preferred business proposition that determines their regulatory status and Tenet has no intention of trying to shoehorn adviser firms in any specific direction.

“We believe we have a responsibility for presenting advisers with the facts to allow them to make their own informed choices regarding advice and regulatory status – whether that be independent, restricted, AR or a DA.”