CACEIS UK, an asset servicing bank, has been censured by the FCA and will make a £31.7 million voluntary payment to WealthTek clients for failing to act on information that left clients exposed to the risk of financial crime.
WealthTek is a wealth management firm that was regulated by the FCA from January 2020 until April 2023 when the regulator ordered the firm to cease operations and appoint special administrators.
The FCA has now secured over £57 million in total for WealthTek clients in just over a year, with action taken against CACEIS UK, Sapia Partners and Barclays Bank UK.
CACEIS UK became WealthTek's sub-custodian in November 2020, meaning they were responsible for keeping its clients' assets safe. WealthTek was then known as Vertus Asset Management.
The FCA's investigation found that on three occasions, CACEIS UK checked the Financial Services Register which showed that WealthTek wasn’t authorised to hold certain client assets but did not take sufficient action.
The firm also did not spot that WealthTek was not allowed to hold client money. However, it went on to open client accounts for WealthTek to use, then failed to monitor those accounts properly by not promptly reviewing and resolving alerts raised by their system.
The voluntary payment will be distributed to WealthTek clients who have not been able to reclaim their money in full.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: “Strong financial crime controls keep clients’ assets safe. CACEIS UK’s failures exposed clients to serious risk.
“The firm chose to do the right thing with extensive co-operation and agreeing to a substantial voluntary payment, and we decided not to impose a fine as a result.”
In December 2024, the FCA, separately, charged WealthTek’s principal partner with multiple criminal offences, including money laundering and fraud. A trial has been scheduled for September 2027 at Southwark Crown Court in the criminal proceedings brought by the FCA against John Dance.
In July 2025, the FCA fined Barclays Bank £3,093,600 for poor handling of financial crime risks in relation to a client money account opened by WealthTek. Barclays also agreed to make a voluntary payment of £6.3m for distribution to WealthTek’s clients who have a shortfall in the money they have been able to reclaim.
