Tenet has revealed that 98% of advisers within its network have maintained independent status in the immediate post Retail Distribution Review (RDR) environment.
The group had previously stated that independence would continue to dominate post-RDR amongst their membership and was one of the first distribution and support groups to publicly declare that independence was not as onerous as many commentators had been stating.
Earlier this week, Tenet confirmed that 10% of investment advisers had been de-authorised post RDR, although the majority of these had planned to do so – either switching their attention to non-investment business or were practising principals who in the short term have decided to focus on the day to day management of their respective businesses.
Even though Tenet has seen a 10% de-authorisation figure, its gross adviser numbers have seen a net increase compared to the same period last year, which it says means that consolidation within the investment sector is clearly already taking place.
Keith Richards, Tenet Group distribution and development director, said: “Whilst we expected the majority of advisers to maintain an independent status it is possible that this position may alter over the coming months and years as advisers evolve their business models as it should always be the adviser’s preferred business proposition that determines their regulatory status.
“Tenet has no intention of trying to shoehorn adviser firms in any specific direction. We believe we have a responsibility for presenting advisers with the facts to allow them to make their own informed choices regarding advice and regulatory status – whether that be independent, restricted, AR or a DA.
“For many advisory firms, the longer term move to a fee and service based proposition will ultimately create a more stable and profitable business model but of course many are just starting the early stages of transition. The unintended consequences of RDR have yet to be fully realised and the true impact on the wider industry will no doubt unfold during the next three years.”
