Tenet network closure: how the firm has battled departing ARs for years

Data from the FCA register shows both TenetLime, its mortgage network, and TenetConnect, its financial advice network, have both seen many appointed representative firms leave from 2019 onwards.

According to the register in 2023 alone, TenetConnect has seen 19 AR firms leave the network but has only had two firms join.

But arguably the worst two years for departures were 2022 and 2021, where 38 and 39 firms left respectively.

These figures were also not propped up by new arrivals, with only two ARs joining in 2022 and 12 in 2021.

The number of net departures started to grow in 2020, the year after Tenet signed a deal with Intelliflo to provide its back office system.

In 2021, FTAdviser revealed a number of AR firms left Tenet's mortgage network as some advisers continue to complain about issues with its back-office systems.

An industry figure with knowledge of the subject said: "Tenet did not help themselves with the way they rolled out [Intelliflo Office] to their mortgage advisers. Given the that in the same period, Intelliflo have considerably grown their market share, this is a classic case of what can happen when you make a good software decision, but if you don’t allocate the right level of resource to the implementation adequately."

At the time Tenet said the departures were “natural attrition and in line with previous years”.

The year 2020 saw 27 departures and only 10 new joiners. In 2019 although eight firms left, seven joined, making up the numbers slightly.

FTAdviser understands Tenet introduced heightened standards for new and existing appointed representatives last year, which included a new turnover threshold. 

Therefore, if an appointed representative did not meet the new turnover threshold, they were released from the network. 

This move was in response to both the appointed representative regime and consumer duty regulations introduced by the FCA.

FTAdviser understand the number of ARs has therefore fallen as a result as Tenet focused on quality ARs that wished to grow.

TenetConnect AR moves

Source: FCA Register

Mortgage network

The situation was not much better at the firm’s mortgage network TenetLime.

Once again, from 2020 onwards the number of ARs leaving the network picked up pace, according to figures from the FCA register.

In 2019, the network saw 26 ARs leave but had 21 join.

But in 2020 the amount leaving almost trebled at 64, but only nine AR firms joined.

From 2021 until now no new AR firms have joined the mortgage network but 135 have left over the same timescale.

Tenet Lime AR moves

Source: FCA Register

Tenet today announced it has closed these networks, with TenetConnect ARs being given a route to The Openwork Partnership and TenetLime ARs being sold in a deal to Primis.

The agreement with Openwork will provide TenetConnect's firms and advisers the choice of retaining their independent status through Openwork's IFA business 2Plan Wealth Management or becoming part of the restricted Openwork proposition.

Meanwhile LSL Property Services, owner of the Primis mortgage network, has bought TenetLime.

There has been a number of changes at Tenet recently as back in March the group announced that chief executive officer Mark Scanlon and chief financial officer Martin Tyler would be leaving the business with immediate effect.

Tenet Group appointed Helen Ball as chief executive to take over from Scanlon.

This followed the launch of a strategic review at the end of 2022 with the aim to examine the group’s options, including a review of the leadership team.

But many advisers had an issue with Tenet's 2019 switch to back-office system Intelliflo Office after many had problems, as reported by FTAdviser at the time.

In 2020 Tenet refocused its business on core areas, centred around its adviser networks and Tenet Compliance Services.

Tenet has been contacted for comment. Intelliflo declined to comment.

amy.austin@ft.com, damian.fantato@ft.com