Tenet Administration leads to FSCS investigation

One of the oldest advice networks in the UK, Tenet, is making 95 redundancies following its administration and is under investigation by the Financial Services Compensation Scheme (FSCS). The FSCS has received complaints from several customers who received pension transfer advice from the firm. Set up by the government, the FSCS is a free, independent service designed to help protect customers when regulated financial firms fail.

In a notice on its website dated 5th June 2024, the FSCS said:

“We’re aware that a number of customers were due to be contacted as part of a past business review into defined benefit pension transfer advice. This advice was given to these customers by appointed representatives who were under the regulatory responsibility of TenetConnect Ltd.

These customers may be eligible to claim compensation from FSCS. We’re working closely with the Joint Administrators to secure data to help us work through these potential claims without customers needing to contact us.”

The Financial Ombudsman Service (FOS), an independent body that resolves disputes between customers and financial services businesses, has upheld three complaints against TenetConnect this year alone, one of which related to British Steel Pension Scheme transfer advice.

A defined benefit (DB) pension scheme pays based on the number of years you’ve been a member of the employer’s scheme and the salary you’ve earned when you leave or retire. They are a very good source of retirement income and are generally associated with public sector workers and those in large established companies, such as local authorities, NHS, armed forces, emergency services, and British Steel.

The benefits offered by a defined benefit pension scheme, sometimes also known as a final salary or company pension, are hard to beat compared to other pensions. Depending on your particular circumstances, switching from a defined benefit pension scheme to a self-invested personal pension (SIPP) can be a risky move, as it involves taking on more responsibility for your investments and potentially higher adviser costs.

Unfortunately, some people have received inadequate financial advice, been advised to transfer their DB pension into unsuitable SIPPs with high adviser fees, and lost out financially.

When a regulated investment provider goes out of business and cannot pay any claims against it, the FSCS can pay compensation of up to £85,000. TLW Solicitors are specialists in FSCS claims, helping customers of failed, regulated financial firms recover compensation.

Our team can handle the complex and time-consuming claims process on your behalf, ensuring you get the best possible result. We understand the information needed to support a claim, are familiar with financial and legal terminology, and, through our latest case management processes, will keep you updated at every stage.

If you or a loved one have been advised to transfer out of a defined benefit or final salary pension scheme and feel you have lost out financially, contact us at TLW Solicitors.

One of our team will be happy to discuss your case on a no-obligation basis to determine whether the advice you were given to transfer out was suitable. We can then explore the different options for making a compensation claim.

Sarah Spruce, Legal Director and Head of the professional negligence and financial mis-selling team at TLW Solicitors said:

“Individuals with defined salary pension schemes should fully understand what they involve and recognise their value when compared to transferring into riskier or unsuitable investments such as SIPPs. Financial advice should make you feel well-informed and confident that you’ve made the right choice for a secure financial future.

TLW Solicitors, with our team of specialists in financial mis-selling, sympathise with individuals who have lost out and are here to help them claim any compensation they are owed by leaving their defined benefit pension scheme. Don’t feel embarrassed or ashamed, it is vital to seek advice and secure your retirement income.”