The Financial Services Compensation Scheme (FSCS) will commence its examination of claims against the collapsed advisory firm Tenet in the early months of 2025. An update on its website indicated that the FSCS has gathered sufficient information since the network's collapse in June 24’ to advance the claims process.
The FSCS stated, "We expect to open our online portal in early 2025 to accept individual claims related to Tenet. Our intent is to initiate the assessment process by first reviewing a small sample of claims, which will inform our longer-term approach."
At this stage, it remains uncertain how many claims the FSCS anticipates receiving or the potential monetary value of these claims. Earlier this year, administrators reported that 9,645 clients were regarded as being at a higher risk of having received unsuitable advice.
The administrators’ report noted that the advice provided to 9,000 clients concerning defined benefit (DB) pension transfers was under review at the time of Tenet's collapse. However, not all of these clients are likely to have received unsuitable advice or be eligible for compensation.
Additionally, the report identified approximately 1,500 clients who have a heightened likelihood of successfully claiming redress, particularly concerning ongoing service fees and the appropriateness of the advice they received. These clients were advised by nine unnamed appointed representatives of Tenet.
As reported earlier in the year Tenet's provider shareholders, specifically Aviva, Aegon, and Abrdn, collectively rejected a funding request from the network when liabilities related to DB transfers were identified.
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