WealthTek LLP

Latest updates

• 12 Feb, 2024

  The Joint Special Administrators (JSAs) will be contacting customers of WealthTek LLP this week to provide them with their Client Assets Statements and inviting them to submit their claims to Client Assets and Client Money Entitlements.

  If you were a customer of WealthTek, you will be provided with a Client Assets Statement which will contain information regarding your Client Assets claim, Client Money Entitlement and any shortfall the JSAs have identified through their reconciliation of the client assets and money.

  FSCS won’t be able to confirm any details outlined on the statements provided by the JSAs. However, you can request contact from the JSAs team to discuss any queries using the online Client Assets Claim Form or alternatively they can be contacted at WealthTekclients@bdo.co.uk or on 0151 351 4700.

  This is the next stage in returning property to customers. The JSAs are also preparing a distribution plan in order to facilitate the return of Client Assets.  It is hoped that once the distribution plan has been agreed by the Clients’ and Creditors’ Committee, and then approved by the Court, then customers’ holdings can be transferred to a new broker.

  FSCS plans to meet the costs of this transfer, and shortfalls in client monies and assets, on behalf of each eligible customer. This is subject to our normal compensation limit of £85,000 per person. 

  We intend to pay the JSAs directly to cover the transfer costs and any shortfalls. However, if a customer states that they do not want FSCS compensation when confirming their claim to Client Assets and Client Money Entitlements, the JSAs will not be able to transfer the customer’s property to a new broker without the customer paying the costs of doing so. Accepting FSCS compensation is subject to our terms and conditions.

• 03 Nov, 2023

  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. 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.

  We're continuing to work closely with the Joint Special Administrators and will provide further updates, including timescales, when that information is available.

   

• 14 Sep, 2023

  We have been continuing to work closely with the Joint Special Administrators about whether there are any claims that are eligible for FSCS compensation.

  We now anticipate that, for customers who are eligible under FSCS rules, we are likely to meet any losses suffered in relation to the following;

  • the costs of returning client money to the customer and;
  • the costs of transferring any assets to a new broker - provided the particular assets are covered by FSCS's rules.
  • client money shortfalls, that have occurred as a result of WealthTek not holding all the client money that it had undertaken to hold for that customer; and
  • client asset shortfalls that have occurred as a result of WealthTek not holding the client assets it had undertaken to hold for that customer.

  Further information regarding eligibility for FSCS compensation can be found here:

  https://www.fscs.org.uk/making-a-claim/claims-process/eligibility-rules/

  Any compensation payable by FSCS is subject to the statutory cap of £85,000 per eligible customer, per firm.

  Prior to any compensation payment, the Joint Special Administrators’ Distribution Plan needs to be approved by the Clients' and Creditors' Committee and the Court. This plan sets out how customer’s property will be returned to them. 

  We don’t yet have a timescale for how long it is likely to take to return money and assets to customers. The Joint Special Administrators will be providing more updates as their work progresses. We will continue to work closely with them and will provide further updates ourselves, including on timescales, when that information is available.

  At the moment, WealthTek customers do not need to take any action regarding FSCS compensation. We remain closed to customer claims.

• 31 Jul, 2023

  We expect that there will be some claims that meet the qualifying conditions for compensation. Investigations are continuing to determine the exact extent of what can be covered. 

  FSCS will not be opening to customer claims right now. We are liaising with the administrators on a regular basis. As more information regarding WealthTek becomes available through their ongoing work, FSCS will continue to review the situation.

• 31 May, 2023

  We are aware that the Joint Special Administrators published their proposals for WealthTek’s insolvency on 30 May 2023. You can find these on the BDO website.

  In the proposals, the Joint Special Administrators have described how they expect a shortfall of up to £81.4m in the client money and assets held at WealthTek.

  The FCA has also published an update on its actions regarding the firm.

  FSCS is working closely with the Joint Special Administrators to establish whether FSCS compensation will be available for customers. We remain closed to customer claims currently.

  We’ll provide further updates on this page as soon as we can.