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November 13, 2023

WealthTek in default but FSCS still closed to claims

The Financial Services Compensation Scheme (FSCS) has declared WealthTek LLP in default, but added it still remains ‘closed to claims.’

The update issued on 3 November 2023 said: “On 14 September 2023 we released an update that we anticipated that we are likely to protect eligible customers. We have now taken the next step by declaring WealthTek LLP ‘in default’.

“Note that we still remain closed to claims. However, this is an important step which needs to be made before we can process FSCS protection for WealthTek clients.”

The FSCS went on to say that: “There is still a considerable amount of work to do before customers can be reunited with money and assets and the issue of shortfalls addressed.”

Adding that the FSCS is continuing to work closely with the Joint Special Administrators and will provide updates and timescales ‘when that information is known.’

The FSCS placed the firm under investigation in April 2023.

 

What happened to WealthTek?

In April the Financial Conduct Authority (FCA) ordered WealthTek to cease operations while it examined suspected regulatory breaches concerning client money and custody assets.

It also froze the assets of WealthTek’s principal partner after discovering a potential shortfall of £81.4mn in client money.

The firm, which also traded as Vertem Asset Management and Malloch Melville, was placed into special administration after the FCA made an application to the court.

The regulator is at present conducting a regulatory and criminal investigation into both WealthTek and its principal partner, John Dance.

WealthTek LLP was an FCA authorised wealth management firm that provided discretionary, advisory and execution only services to retail clients.

However according to the FCA WealthTek did not have permission to hold client money or custody assets.

Important Information!

You are not required to use our services to pursue your claim. You can also seek further advice or shop around subject to any time limits within which a claim must be made.

It is possible for you to present the claim for free, either to the firm or person against whom you wish to complain or to the statutory ombudsman (Financial Ombudsman Service or Pension Ombudsman Service) or the Financial Services Compensation Scheme, whichever is applicable to your claim.