Tenet has announced it has completed a deal with Berkeley Berry Birch (BBB) to take over the activities of its major subsidiary companies.
The deal with Tenet see it acquire the following businesses:
- Berkeley Direct
- Berry Birch & Noble Financial Planning Ltd.
MacRobins will become an Appointed Representative of Interdependence and although previous speculation included the potential purchase of Westons, BBB are in separate discussions regarding the national IFA.
BBB says it will use the funds from the sale of the businesses and their related assets to meet the Group’s liabilities to its creditors and the subsequent wind down of the business, although as yet there has been no indication as to how much it has sold its subsidiaries for. It states that it hopes to achieve a solvent wind down of the rest of the business.
Andrew Shortis, BBB’s group managing director, says the Group pursued every possible avenue to rectify its capital adequacy shortfall.
But having failed to achieve this goal Shortis states: “The subsequent actions we have taken, are, we believe, in the best interests of our creditors and shareholders. Many people here have worked tirelessly to try to secure the ongoing future of the businesses and the board is grateful to those staff for their efforts. I am particularly grateful for the loyalty of our advisers and network members who have been so supportive to us during this most challenging period.”
Simon Hudson, chief executive at Tenet, says: ‘We believe that the advisers within the Berkeley Group are of a high quality and merit having a support service company of equal standing. It is always disappointing if a host company is unable to continue to support its members, but there is no reason why the advisers should be prejudiced by the difficulties being experienced by Berkeley.
“Tenet is able to provide these advisers with their own branded identity in our Group, ensuring continuity of their operations and the ability to develop their businesses successfully. My management colleagues and I are committed to the ongoing success of the Berkeley advisers. We will provide a highly attractive environment for them all in both regulatory and business development terms whilst being able to offer professional indemnity insurance on highly competitive premium terms."
Hudson has also moved to allay adviser fears stating that Tenet has organised a series of conferences this week for all the Berkeley Group advisers in order to introduce them to the new offering from Tenet. He says Tenet also wants to ensure Berkley Group advisers are able to continue trading with the minimum of disruption after what has been "a challenging and stressful time for all involved."
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