The Financial Services Compensation Scheme has opened an investigation into two companies owned by the Tenet Group which fell into administration yesterday.

The FSCS says it has opened cases on TenetConnect Ltd and TenetConnect Services and is looking at investment and pension transfer advice given by the firms.

Neither firm has yet been declared as failed by the FSCS.

Pension transfer advice given by the firms is one area the FSCS is investigating.

TenetConnect (FRN:149826) was a network for advisers providing advice on investments and other products while TenetConnect Services Ltd (FRN:150643) was a sister company to the network.

Leeds-based parent company Tenet Group Limited went into administration yesterday although parts of the group, recently subject to several sell offs, continue to operate. Administrators Interpath Ltd have been appointed as Joint Administrators of Tenet Group Limited.

The administrators have so far made 95 staff redundant out of a total of 147. Remaining staff will assist with handling client enquiries and maintaining the businesses.

TenetConnect Ltd was directly authorised by the FCA and was a principal to two appointed representatives: Tenet & You Limited and Tenet Financial Services Limited.

The FSCS said it was handling the failure of TenetConnect Ltd and TenetConnect Services Ltd together, but as both were authorised under their own FRN there are two separate 'failed firm' pages on its website. Both firms also used Tenet Network Services as a trading name.

The FSCS said in a statement on TenetConnect: “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.
FSCS is not open to claims against TenetConnect Ltd while we obtain, secure and organise the data provided about past business reviews, which in our experience is likely to take several months.”

The FSCS has issued its customary warning to TenetConnect clients to be wary of scam approaches while investigations are under way.