Tenet network
Looking to speak to mortgage brokers about The Openwork Partnership and LSL acquiring Tenet's AR network.
- Was the move surprising?
- Will this have ramifications for other networks?
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With the market conditions as they are currently, the increased demands on networks to know their AR businesses better and consumer duty coming in, the margins for networks will be reduced somewhat. I think there will be a consolidation of networks and firms over the coming years as the regulatory environment created by recent FCA changes is set to discourage sole trader ARs and smaller networks.
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As the MD of an independent network, New Leaf, it’s important that all AR firms know that they have a choice as to where they want to ply their trade.
Networks should be accountable to their members and this Tenet shutdown/ sell off risks moving more brokers and IFAs towards restricted offerings which might not be in the best interest of the consumer or the Adviser firm themselves.
On a personal level, it’s a sad day for the network sector. Seeing Tenet fail in such a short space of time after a long history also highlights the the risks we all face. You can never be too big to fail but the importance of strong decisive leadership and corporate culture must not be overlooked.
To all Tenet AR firms, remember, you are in control, you do have a choice and you can choose to work with a network that best suits your needs. It should never be forced upon you.
Networks should be accountable to their members and this Tenet shutdown/ sell off risks moving more brokers and IFAs towards restricted offerings which might not be in the best interest of the consumer or the Adviser firm themselves.
On a personal level, it’s a sad day for the network sector. Seeing Tenet fail in such a short space of time after a long history also highlights the the risks we all face. You can never be too big to fail but the importance of strong decisive leadership and corporate culture must not be overlooked.
To all Tenet AR firms, remember, you are in control, you do have a choice and you can choose to work with a network that best suits your needs. It should never be forced upon you.
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This isn't surprising in the slightest. Tenet once were a network with very generous commission splits and flexible in terms of processes. In early 2020 Tenet launched the mandatory use of Intelliflo, a CRM system, designed for IFA's, not mortgage brokers. Having once used it myself I can concur it is not very suitable for mortgage only advice. Advisers have since left in droves, citing Intelliflo as the reason for leaving and almost no new advisers joining. I can only assume it were more viable to sell the network, than to replace Intelliflo. This stands as a sage lesson for networks, trial new systems/processes with your advisers or they will vote with their feet.