An adviser, whose firm was formerly part of the Tenet network, has been left furious after the collapsed company’s administrations wrote to his clients questioning whether they had received “unsuitable advice”.
The adviser, who wishes to remain anonymous, said he regards the letter as “misleading” and leads “customers to have negative assumptions about advice firms".
The letter, seen by FT Adviser, stated: “[The administrators] have identified that you may have previously been advised by [name of advice firm] which may have included advice in relation to defined benefit pension transfers.
"As a result of this, you may have received unsuitable advice, and if this has resulted in a loss you may be entitled to redress.”
The adviser was an authorised representative of Tenet before the network went into administration in June 2024.
The adviser told FT Adviser: “I am livid. I have never had a complaint against me or against the firm. We were part of the Tenet network until 2023, and then went in a different direction.
"When we worked with Tenet, we did some defined benefit pension transfers, and there has been no problem with any of them, there are no complaints and never have been.
"I am close to my clients so I don’t fear there being a legal issue for me. But my clients, when reading the letter, have used words like ‘concerned’ to describe their reaction,and I don’t blame them.
"If they were to look up Interpath, they would see it is the insolvency business that was part of KPMG, so a blue chip firm. I think it is appalling they have written these letters, it is just inviting trouble.”
Tenet had previously been issued with an S166 shortly before entering administration.
An FCA S166 notice aims to “provide an independent review of the proactive redress exercise and past business review".
FT Adviser understands that Interpath’s view is once S166 notices have been put in place by the FCA, then a letter similar to the one set by Interpath would have to be sent.
Even if no administration had happened they would have received a letter from the FCA inviting them to participate in a review of the advice they had received.
FT Adviser understands the administrators liaised with the FCA and the FSCS with the creation of the letter sent to former clients of Tenet.
Clients of the firms that have been authorised representatives of Tenet received the letter.
FT Adviser understands Interpath also views potential future redress claimants as potential creditors of Tenet, and as such, has a duty as administrator to interact with them.
Interpath declined to comment for this article.
david.thorpe@ft.com
