Network Tenet has said it will recover Keydata compensation costs from the advisers who sold it, claiming they were not authorised to do so.
The Financial Services Compensation Scheme (FSCS) is pursuing Tenet over the costs of compensating Keydata investors. Tenet executive chairman Martin Greenwood said it would recoup the costs of any FSCS bill from offending members.
'Keydata was never authorised but advisers managed to side step [and invest]. We will pursue the advisers responsible and recover losses. Any side-stepping is a serious breach of procedures which is something we cannot ignore,’ he told the Tenet’s annual conference this morning.
Greenwood said the group’s stance over Keydata differed to that over Arch Cru, as it had allowed members to invest in one of the Cru funds and so would shoulder the cost of claims.
He revealed Tenet had also taken on 160 advisers over 2012. Greenwood added that the group had emerged with a clean bill of health as the Financial Services Authority examined relationships between providers and distributors.
'We are delighted that the FSA, except for one minor comment was entirely satisfied and no further action [is needed],' he said.
Greenwood said Tenet was working on developing a restricted offering but would not force its members down a particular route.