Tenet wants independence for its own advisers

Tenet distribution and development director Keith Richards [pictured] said the group would be sending strict guidance to 5,500 advisers across its directly authorised, appointed representative and mortgage adviser streams.

"We are coming out with a very firm view that the vast majority of advisers in Tenet will retain an independent status," he said.

The pressures of adapting to RDR were not as difficult as Tenet first feared, he added, with the number of advisers expected to leave the business as a result of RDR set to be below 6%.

The news comes after the group reported "positive" year-end results last week, despite a £290,000 loss. Tenet recorded a £1.3m operating profit, before taking into account £1.5m of restructuring and RDR costs.

In its annual accounts, Tenet director Geoffrey Clarkson admitted the directly authorised arm Tenet Select, and brokers Tenet Lime, are expected to face "challenges for the foreseeable future and may require additional capital support", bankrolled by the continuing performance of Tenet Connect.

The group consolidated its seven brands into three - Connect, Select and Lime - as well as closing a regional office in Andover.

However, Richards said Tenet had "stepped away from targeting expansion through acquisitions", preferring to target organic growth, despite cash reserves of nearly £27m.

"We are in a challenging market that will undoubtedly lead to more consolidation," he said. "If the right opportunity comes along and it is the right cultural fit then we will engage."