Tenet has stated that not only is it not as onerous to maintain an independent status post-RDR as first predicted but, following in-depth analysis, the cost of their service to adviser firms is unlikely to see any material differential, which the group says equally extends to PI cover.
It has been espousing this view at its recent roadshows around the UK.
Tenet says that when the rules were first published, the increased requirements to maintain an independent status were at first seen by most as overly challenging and inappropriate for the majority of UK consumers. This would accordingly have the material affect of influencing advice strategies post-RDR. The firm said it was also intuitively felt that there would be an increased cost in meeting the new requirements as well as potentially higher premiums for PI insurance and support.
However, Tenet says its research suggests that to maintain an independent status is not as onerous as first anticipated and from a Tenet perspective, it does not foresee any pricing differential for support or indeed, for PI insurance.
Tenet says it cannot see any evidence or reason to justify the view that the cost to maintain independence would be higher than for restricted status.
Keith Richards, group distribution and development director, said: “As a group