A major update has been announced for former clients of WealthTek LLP. The Financial Conduct Authority (FCA) has publicly censured CACEIS UK, the bank that acted as custodian for WealthTek, after identifying failures in its oversight of the firm.
As part of the outcome, CACEIS UK has agreed to make a voluntary payment of approximately £31.7 million, which will be used to benefit affected WealthTek clients.
WealthTek at a Glance
| Details | Information |
|---|---|
| Firm | WealthTek LLP |
| FCA Reference Number | 832264 |
| Current Status | Failed firm in Special Administration |
| Latest Development | FCA censures CACEIS UK and secures a £31.7 million voluntary payment |
| Distribution of Funds | Around £30.9 million to the Joint Special Administrators (JSAs) for clients and £800,000 to the Financial Services Compensation Scheme (FSCS) |
Why Has the FCA Taken Action?
CACEIS UK became WealthTek’s sub-custodian in November 2020. In that role, it was responsible for safeguarding client assets and ensuring appropriate oversight of the accounts it maintained for WealthTek.
Following its investigation, the FCA concluded that CACEIS UK failed to respond to several warning signs. These included information on the Financial Services Register showing that WealthTek did not have permission to hold certain client assets or client money. The regulator also found shortcomings in the way CACEIS UK monitored the accounts it had opened.
Instead of imposing a financial penalty—which the FCA said would have been around £23 million after applying settlement discounts—CACEIS UK agreed to make a larger voluntary, ex-gratia payment of £31,714,068 for the benefit of WealthTek’s clients.
Approximately £30.9 million will be paid to the Joint Special Administrators for distribution to eligible clients, while £800,000 will be paid to the FSCS to support its statutory recovery work.
Part of a Wider Recovery Effort
The latest payment forms part of a broader recovery programme. Over the past year, the FCA has secured around £57 million in total from CACEIS UK, Sapia Partners and Barclays Bank UK to help compensate WealthTek clients.
These recoveries are intended to increase the funds available to clients who suffered losses following the firm’s collapse.
Background to the WealthTek Case
WealthTek LLP entered Special Administration in 2023 after serious concerns emerged regarding the handling of client assets.
Its former principal partner, John Dance, has been charged by the FCA with criminal offences relating to the alleged misappropriation of approximately £64 million of client money. The criminal proceedings are currently scheduled to be heard at Southwark Crown Court in September 2027.
What This Means for WealthTek Clients
The additional funding is positive news for former WealthTek investors, as it increases the amount available to cover any shortfall in client assets.
The FSCS has also confirmed that eligible customers are not expected to submit a new compensation claim. Once the recovery process has been completed, any available surplus funds are expected to be distributed by the Joint Special Administrators in accordance with the FCA’s Compensation Sourcebook rules.
For most clients, the best course of action is simply to remain in contact with the administrators and ensure that their contact details are kept up to date. Further updates are expected as the distribution process progresses.
Watch Out for Recovery Scams
High-profile financial failures often attract fraudsters claiming they can help recover lost investments for a fee.
If you are a former WealthTek client, remember that neither the FSCS nor the Joint Special Administrators will ask you to pay an upfront charge before releasing any money that may be due to you.
If you receive an unexpected call, email or message offering to recover your funds, verify its authenticity before providing any personal or financial information.
Need Help Understanding Your Position?
If you previously invested through WealthTek and are unsure whether your claim falls under the administration process, the FSCS, or both, it’s worth seeking independent guidance.
Understanding the correct route can help avoid unnecessary delays, and many organisations can explain your options without any obligation or upfront cost.