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WealthTek, also known as WealthTek LLP, was a well-recognised Discretionary Fund Manager based in the North-East, United Kingdom. Authorised by the Financial Conduct Authority (FCA), the firm provided various discretionary, advisory, and execution-only services to individuals.
WealthTek faced various compliance issues in 2023 and before, related to financial malpractices carried out by them. The UK Financial Conduct Authority (FCA) were alerted by a whistle blower who had highlighted concerns in relating to mini-bond investments within the Wealthtek’s portfolios. The FCA investigated and discovered various regulatory and operational issues within the firm. The case was then taken to and approved by the High Court. Interim managers were also appointed to oversee this process. Finally, on 4th April 2023, the FCA ordered the cessation of all operations carried out by WealthTek.
As an FCA regulated firm the Financial Compensation Scheme has invited clients of Wealthtek who believe they have suffered financial loss to submit claims however there are concerns that claims will be capped at £62,000, £23,000 less than the usual maximum compensation.
WealthTek was a Discretionary Fund Manager (DFM), who built up their assets under management by convincing regulated financial advisers to choose their DFM service over more well-established firms with larger portfolios and better track records and reputations.
Whilst it remains unclear as to why regulated advisers would have chosen Wealthtek it is quite likely that they were incentivised in some way, whether through financial incentives by way of furnishing the Financial Advisers with client prospects in return for choosing their DFM service. The motivation remains unclear however the facts are that there were more well established and suitable products available at the time.
Wealthtek also marketed their services directly to clients on an execution only basis (meaning the client did not have financial advice).
Customers paid fees to Wealthtek, based on the amount of money they had invested and the selected portfolios.
Discretionary services mean that WealthTek was authorised to make independent investment decisions on behalf of its clients. However, there are clear guidelines and parameters from the FCA when it comes to managing people’s money, especially when those clients are NOT sophisticated or high net worth investors.
Whilst a DFM does have discretion, they should not deviate from the investment mandate that the client invested into. It became clear that Wealthtek (among other DFMs such as Beaufort Securities and SVS Capital) had deviated from their investment mandate by making a series of investments into Mini-Bonds.
Whether Wealthtek’s motive was a direct commercial gain or for the promise of higher returns to boost their performance is irrelevant. Clients trusted Wealthtek with their money, Wealthtek took unnecessary risks by choosing inappropriate investments and many of their clients have lost tens of thousands of pounds.
If you were a direct client of Wealthtek you have two ways to claim. You can submit a claim via the Financial Services Compensation Scheme (FSCS). However there is a cap on the amount you can claim and the process could take quite some time. However, has gone into default in the last *6 years you could bring a claim against Wealthtek via the courts. Whilst this does incur more costs, due to strain on the FSCS who deal with all manner of financial services claims, taking action through court may not only be quicker, it may also result in a larger cash payout as the maximum loss you can claim for against Wealthtek’s professional indemnity insurance is significantly higher.
Every Wealthtek case however similar, has to be looked at on its own merit. We work on a no-win no-fee basis with the primary goal of ensuring you receive the maximum compensation or financial redress available.
If you were advised to invest into Wealthtek by a regulated Financial Adviser you may well have a number of advice claims that can be made dependent on the type of investment, when it took place, whether the financial adviser is still trading and the amount you invested. Even if the adviser is no longer trading, you claim limit with the FSCS would likely be higher by pursuing a financial adviser claim than via Wealthtek directly. If the financial adviser is still trading, then a complaint can be brought via the Financial Ombudsman and ultimately through the courts if necessary to ensure the maximum payout.
Any regulated party who were involved in promoting Wealthtek products and services could be liable for financial redress if you have evidence that they were involved in the process of introducing you to Wealthtek, even if they did not have investment advice or investment management permission.
There are a multitude of different scenarios in order to seek compensation or financial redress for your investments from WealthTek or an other financial adviser or DFM.
This is why we offer a 30 minute free consultation with on of our finance experts. We will quickly agree the next steps and gather all the evidence before advising you on the best course of action.
Book your free consultation here today
HT Legal is a well-known name that helps individuals recover their hard-earned money from WealthTek and other wealth management firms in cases of cheating, misguidance, and misadvice. They closely examine even the smallest details and practice transparency to provide their clients with effective and efficient results.
HT Legal consists of experts who are excellent at their work. They will handle your claims with utmost precision
We are committed to handling our clients' claims efficiently and effectively. There is a high chance that you will get your money back when associated with HT Legal.
We focus on satisfying our customers and building their trust through a transparent process with guaranteed results.
Begin your WealthTek claim settlement journey with HT Legal. Provide us with some necessary details, which will become the basis of our assessment. Our WealthTek claims solicitors will maintain regular connectivity with you and provide all the essential updates.
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Find out if you’re eligible to claim