IFA network Tenet Group is to close its wealth business and offer advisers a chance to join the bigger Openwork Partnership.

The transfer of the business will potentially add 170 new firms and 360 advisers to Openwork along with £6bn in assets.

Openwork is one of the UK’s largest adviser networks with more than 4,500 financial advisers working in more than 820 firms. It has more than 600 employees.

Tenet has been considering the future of its wealth business for some time and announced a series of major changes today follow a strategic review.

The changes include:

• Advisers in Tenet’s Wealth & Investment Network will be offered a “fully supported transfer” to The Openwork Partnership, with the option to retain their independent status in the 2plan Wealth Management network
• Mortgage adviser firm LSL Property Services, owner of the PRIMIS mortgage adviser network, has acquired TenetLime, a mortgage and protection network with 133 Appointed Representatives
• The Tenet & You, Tenet Mortgage Solutions and Tenet Financial Services advisory brands will remain with the Tenet Group
• Tenet Compliance Services will also be retained in the Tenet Group and will provide compliance services and regulatory support to directly authorised advisory firms

Phillip Hilling, chairman of Tenet Group, said:  “The board of Tenet is pleased to announce the completion of our strategic review which concluded that these transactions affecting Tenet’s Appointed Representative networks are in the long-term best interest of all stakeholders, and we are delighted to have secured well-established, successful businesses with matching cultures for our customers and their advisers.

“These outcomes provide certainty and sustainability for our appointed representatives, customers and employees and support our ultimate objective of producing good consumer outcomes. We look forward to working with Openwork and LSL (PRIMIS) in ensuring a smooth transfer of appointed representatives and our employees. On behalf of the board, I would like to thank our colleagues for their support and hard work in achieving this successful conclusion and wish them well for the future.”

Helen Ball, CEO of Tenet Group, said: “Openwork and PRIMIS have strong reputations for supporting appointed representatives and they can be confident that their new homes will allow them to grow with the support, freedom and control their businesses need. Our focus now is to work with all the parties in these transactions to deliver a smooth transition for our stakeholders.”

The transfer of customers, advisers and staff from Tenet Group is expected to be completed by mid-2024.

Openwork said in a statement today it had signed an exclusive agreement to enable the deal to go ahead. Any financial arrangements have not been disclosed.

Richard Houghton, CEO at The Openwork Partnership, said: “Not only does this exclusive agreement represent a brilliant opportunity for The Openwork Partnership commercially, but it also demonstrates our continued commitment to ensuring everyone in the UK has access to financial advice.  

"I’m delighted that we can support those advisers impacted by Tenet’s decision and offer them a positive outcome from the situation.  The fact that we can provide such a wide range of options to the Tenet Wealth Management firms demonstrates the breadth and strength of the The Openwork Partnership.”