The company said this “quality drive” was due to the regulator’s increasing focus on the good customer outcomes, which includes new consumer duty and increasing scrutiny of the AR and principal regime. It noted that this was also “in-line with industry peers”.
The firm did not disclose how many firms were being let go from its network, but a spokesperson said that it was a “small number”. It currently has 439 members on its network.
The company said the small number of firms being released could not meet “new quality standards”, were not writing enough business for the network to “adequately assess their competency” or they had other business interests so were not “fully engaged” with the advice business.
It added that the firms have already been informed and were in discussions about “alternative options within the group or support to grow their business”. This could include joining another network or becoming a directly authorised broker.
The firm also announced that it would launch a learning and development portal with further training, marketing toolkit, communication, better knowledge base and new policy framework that manages the introduction of new policy and version control.
Steve Jones, managing director at Tenet Network Services, said: “Our strategy is to ensure all members are fully prepared for future increases in regulatory oversight by providing them with the tools, support, and security they need to operate and grow with confidence.
“Quality has to come before quantity. Raising the entrance bar for new members has resulted in us declining record numbers of applicants in the last 12 months, whilst our tightening of existing membership criteria has naturally meant some firms who do not meet the required quality standards are being released.”
He added that Tenet was in discussion with affected firms about options and it was supporting members who had expressed a desire to grow.
“Such decisions have not been taken lightly but are necessary to protect the network from firms posing a clear compliance and profitability risk to other members. As a network, it’s vital we remain strong, not just in terms of how we operate, but also strong in the knowledge we are all working together towards a common goal – providing quality advice that gives members and their clients security and financial peace of mind,” he said.
