It said if the network was no longer in existence, claims would go to the Financial Services Compensation Scheme.
The adviser said: “If we did something like that, as advisers to our clients, the FCA would have our business.”
In response to an FT Adviser story last month, others raised concerns about the lack of PI cover.
One reader commented: “Unfortunately the run-off cover is potentially pointless as for most clients given advice by AR's of Tenet any claims will fall on the FSCS. Many AR's were forced to buy this overpriced cover that may be worthless.
“This type of network model has potentially had its day.”
Next steps
When the administrator's report was written, around 40 employees and contractors were still on board to assist with the wind-down process.
The administrator’s report sets out the total cost for their services, up to July 5, stood at £772,222. The administrators said it was “prudent” to bring the administration to a conclusion in due course.
It expects this to be done through voluntary liquidation, where a company's assets are sold before being dissolved completely.
In June, the Financial Services Compensation Scheme said it was not open to claims but was working with the administrators to identify customers who may have a claim for compensation.
It said: “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 Services 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.”
tara.o'connor@ft.com
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