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We wanted to reward those ‘de-risking’ business, says Tenet

Tenet has said its offer of a 50 per cent reduction in the professional indemnity insurance excess for chartered adviser members reflects the fact that the heightened qualification standard effectively ‘de-risks’ both their business and that of their parent network.

Last month FTAdviser reported that Tenet had negotiated a “special deal” with its insurance underwriting subsidiary to offer chartered advisers a 50 per cent discount on their professional indemnity excess when compared to a standard policy.

In a video interview with FTAdviser’s Emma Ann Hughes ahead of the roll out of the offer next week, Gill Davidson, group regulatory director, revealed the business wanted to financially reward members who were achieving top qualifications.

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Ms Davidson, who joined the network to deal with regulation earlier this year, said the firm also wanted to acknowledge that “the cost of being a financial advise... only seems to be going up”.

“We want to support our members as much as we can so in terms of professional indemnity excess, what we are doing is introducing from October this year halving the excess for those of our members who achieve Chartered status.

“We are recognising that with the increased professional qualification that effectively they are de-risking their business and, of course, it is de-risking us as a network.

“Those are the sorts of changes we are making and of course we are doing a lot of work with the long-stop as well.”

Earlier this summer, Tenet launched an online petition calling for a limit for the period when an adviser might be liable for complaints, which has now received close to 4,000 signatures.

Click here to watch the full interview.