Tenet Group has entered administration leaving some of its advisers unable to continue providing regulated advice to customers.

The directors of TenetConnect and TenetConnect Services were yesterday placed into administration, with Interpath Advisory appointed as the administrator for both firms.

The two subsidiaries were both authorised and regulated by the Financial Conduct Authority (FCA), using Tenet Network Services and TenetConnect as trading names, and oversaw networks of financial advisers who operated as appointed representatives (ARs).

In some instances, ARs are legally allowed to carry on regulated advice activity without being authorised, known as a principal, because their conduct remains the responsibility of the authorised firm.

Customers’ existing products – which could include ISAs, pensions, existing mortgages and insurance products – will not be affected by the administration of the two Tenet subsidiaries.

Recent mortgage offers, however, that have not yet reached the formal offer stage may be affected, including those under the Tenet Mortgage Solutions (TMS) entity, which also stopped trading yesterday.

TMS was a subsidiary of Tenet Group but has been an AR of advice group Openwork since 21 March this year. Advisers who provided advice to customers before this date will remain responsible as principal, but customers who received advice from an adviser in relation to a mortgage application after this date will be contacted by Openwork.

Advisers of another of Tenet Group’s entities, Tenet Financial Services (TFS), will also be affected after this group’s AR status ended with the Tenet Group’s administration. Advisers who were registered with TFS can no longer provide regulated financial advice to customers until they get an appropriate regulatory status from the FCA.

Tenet Group’s administration follows moves to offload some of its other entities this year, with TenetLime sold to LSL Property Services Group in February and no longer forming part of the Tenet Group, as well as Tenet & You, which was sold to My Pension Expert last week.

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