Tenet's profits soar by 24%

Tenet's profits soar by 24%

Adviser services group Tenet increased its profit by 24 per cent for the year to £584,000 with turnover up 13 per cent to £154m.

The intermediary support services group, which came fifth in Financial Adviser's 2016 Top 100 Financial Advisers list, reported it had been a year of "political surprises, uncertainty around Mifid II and changes within regulatory capital rules".

"We are very pleased to deliver ahead of our financial plan," said Tenet's chief executive Martin Greenwood.

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"We’ve now posted our fourth consecutive year of profit growth and are continuing to invest in the future, supporting advisers to choose the right advice model and regulatory status for them and their clients.”

The company has three main propositions for advisers.  

TenetLime, the group’s non-investment network, increased turnover by 33 per cent to £40.4m.

Tenet’s investment network, TenetConnect, held its turnover at £111m and its directly authorised proposition, TenetSelect, grew the number of firms serviced by 10 per cent.

The figures came shortly after the company stated it had changed its focus to customer satisfaction after receiving a negative Investor in Customers score in 2013.

As a result of refocusing the business on customer satisfaction, the company was awarded three stars, as opposed to the earlier one star from Investors in Customers.

The company was awarded the Customer Excellence Award for a network at the Legal & General Insurance Business Quality Awards in February.

Last month Tenet revealed it had expanded its experiment with restricted advice.

Mike O'Brien, group regulatory director for Tenet, said the new restricted proposition being trialled had been in response to demand from several of its adviser customers.

In October Mr O'Brien said this was only being trialled with two firms but in the past three months it has been expanded further to cover half a dozen. 

He said: "A number of our customers came to us and said they wanted to develop a restricted advice proposition, but did not know how or where to start. This is why we developed a proposition that is suitable for their client bank.

"We have a certain number of firms who have chosen to go down that route."