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WealthTek LLP

Failed 03/11/2023

FRN: 832264

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

It also traded as Vertem Asset Management and Malloch Melville.

On 06 April 2023, following an application by the FCA, the Court appointed Joint Special Administrators of WealthTek LLP. These are Shane Crooks, Mark Shaw and Emma Sayers of BDO LLP.

A statement on the FCA website said that “Various urgent actions have been taken in order to protect WealthTek’s clients following the FCA becoming aware of serious regulatory and operational concerns relating to the firm. The FCA used its powers under the Investment Bank Special Administration Regulations 2011 to apply to Court to place WealthTek into Special Administration.”

It added that Northumbria Police, working in partnership with the FCA, arrested principal partner Mr Dance in connection with the FCA’s investigation.

The FCA later confirmed it had interviewed him under caution and had also obtained a worldwide order to freeze assets belonging to Mr Dance up to the value of £40m.

In May last year the FSCS announced that The Joint Special Administrators had published their proposals for WealthTek’s insolvency. In the proposals the JSA’s described how they expect a shortfall of up to £81.4m in the client money and assets held at WealthTek.

 

Latest from the FCA on WealthTek

On 1st march 2024 the FCA announced that the High Court has allowed a 12-month pause in its civil case against WealthTek over serious regulatory breaches.

The regulator says it will focus on investigating ‘suspected criminal offences’ by WealthTek owner Mr Dance.

 

WealthTek LLP declared in default by FSCS

The Financial Services Compensation Scheme (FSCS) declared WealthTek LLP in default on 3 November 2023.

This was following several months of investigations into claims against the firm.

It advised WelathTek clients 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.”

In September 2023 the FSCS said it anticipated it was ‘likely to protect eligible customers’ and cover losses for some WealthTek clients.

Latest from FSCS about WealthTek claims

The latest update from the FSCS about WealthTek claims was published on 12 Feb 2024.

The FSCS  said it plans to meet the costs of transfers to a new broker, and shortfalls in client monies and assets, on behalf of each eligible customer.

It clarified that this would be subject to its normal compensation limit of £85,000 per person.

Key Facts

1
In April 2023 the Court appointed Joint Special Administrators of WealthTek LLP following an application by the FCA
2
The FSCS declared WealthTek in default in November 2023

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Important Information!

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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.