Tenet posts £580k profit as it sets aside £7m in reserves

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Tenet has posted a profit of £584,265 for 2016 as it sets aside £7.4m for potential liabilities.

The network’s results for the year to 30 September show a 24 per cent increase in pre-tax profit compared with £471,952 for the previous year.

Provisions for liabilities have dipped slightly from £7.6m to £7.4m. Tenet makes this provision for its own insurance company, which provides run-off cover for advisers.

The reserves relate to claims that have not arisen yet, and existing claims Tenet is dealing with.

Existing claims include Sipp transfers to unregulated investments such as golf courses in Spain, following a Financial Ombudsman Service ruling against Tenet last year.

Claims also relate to mortgage advisers who have sold unregulated investments without Tenet authorisation.

In the accounts, Tenet says it has received a complaint about the sale of an unauthorised product but when asked about the nature of the complaint Tenet declined to comment.

The accounts say: “In the normal course of business and in common with the rest of the industry, the Group receives queries and complaints regarding the sale of financial products and/or advice.

“One such complaint regarding the sale of a product not approved by the group, through a firm the group had not authorised to give advice has been received.”

Tenet says it has not made a provision for the loss but if the claim is successful redress would be received from the appointed representative involved or Tenet’s professional indemnity insurance.