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Tenet piloting restricted proposition

Tenet piloting restricted proposition

Tenet is piloting its own restricted proposition after demand from its advice firms.

At the moment the company offers support to firms which want to set up their own restricted proposition.

But Mike O’Brien said there has been demand from advice firms for a ready-made Tenet restricted service.

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He said: “We have helped about 20 firms develop their own restricted advice propositions and we have had some demand for Tenet to develop a common proposition which can be adopted by firms for appropriate client segments – with the ability to provide independent advice or other solutions where in the client’s interests to do so.

“We still allow both and we still support ARs and DAs but it is an expansion of the proposition and you can elect to be fully restricted which may lead to reduced overheads, a lower risk profile and a more efficient sales process.”

Mr O’Brien said the service was in its “embryonic stage” and is currently being trialled by two firms.

He said the pilot would be expanded to five or six firms next year.

“Once we have honed the proposition and the associated processes and collateral we propose to make this available to a wider audience,” he said.

The proposition covers investments, pensions, protection, estate planning and mortgages.

This is the second pilot Tenet has launched in recent months. In June it announced a plan to pilot a programme of buying the businesses of its retiring advisers.

Mr O’Brien said this was also introduced following demand from advises who wanted a way to exit the market.

Earlier this month FTAdviser reported that some Tenet shareholders were uphappy about how the company was being run and wanted it to go restricted.

But Mr O’Brien disputed this and pointed to the fact Tenet transitioned successfully through RDR and increased its profits this year.

He also pointed out that Tenet is expanding its paraplanning operation, re-engineering its business process and invested £1.7m in the last financial year, including a new version of its technology platform.