Failed 06 April 2023
WealthTek LLP was an FCA authorised wealth management firm. The firm provided discretionary, advisory and execution only services to retail clients.
On 06 April 2023, the Court appointed Shane Crooks, Mark Shaw and Emma Sayers of BDO LLP as Joint Special Administrators of WealthTek following an application by the FCA.
Further details can be found at the Joint Special Administrators’ website.
The Joint Special Administrators have also advised that customers who wish to speak to someone should contact WealthTekclients@bdo.co.uk or on 0151 351 4700.
You can also read details on the FCA website.
FSCS will not be opening to customer claims right now, but we will be investigating whether there are any claims that are eligible for compensation and how any claims might best be dealt with. As part of this investigation, we will be working closely with the Joint Special Administrators and the FCA.
Further updates will be posted on this page when they become available.
Download the determination papers (pdf 0.1MB)
Being alert to scams
Scammers may look to take advantage of the special administration of WealthTek to try to defraud clients.
All clients should remain alert to the possibility of fraud. If you are cold called by someone claiming to be from WealthTek or BDO LLP, please end the call and contact BDO LLP on WealthTekclients@bdo.co.uk or on 0151 351 4700.
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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:
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.