Tenet’s regulatory director has said the network group was surprised to find itself under fire over its exit fees earlier this year, saying it does not apply blanket fees to departing members and that any levy would simply cover the cost of a “man with a van” to pick up client files.
Speaking to FTAdviser in the first of a two-part video series, Gill Davidson, group regulatory director of Tenet, responded to questions on the network’s current and future plans, as well as in relation to criticism it received earlier this year over non-contractual exit fees.
TenetConnect came under scrutiny back in April from two advisers who were charged £500 charge for leaving the TenetConnect adviser network.
One of the firm’s directors said he was surprised to see the extra ‘resignation fee’ included in a statement from the network, but paid the fee to avoid trouble. The fee was in addition to any extra PI premiums or regulatory levies which are imposed in year-long periods.
Ms Davidson said that the criticism came as a “surprise”, adding that exit fees are “really not something that is on our agenda as being an issue”.
Whether someone who is leaving Tenet is even charged an exit fee will depend on “circumstances” and are essentially simply charged in instances where the network needs to collect client files.
Ms Davidson said where exit fees could be charged is where “we literally have to hire a man with a van with boxes to go and collect the customer files. That is really what it is about.”
She said: “If we have got somebody with a disc – and it is all on the disc – then there will not be a charge.”
Ms Davidson also talked about the training being offered by Tenet to members to equip them with the knowledge they need to help their clients get the best retirement income deal post-April 2015.
She said: “The advice has to remain suitable. We are already seeing an increase in demand (for at-retirement advice) and all of that work we pre-sale assess.”
emma.hughes@ft.com
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