CACEIS UK, an asset servicing bank, has been censured by the UK Financial Conduct Authority (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.

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 client’s assets safe. WealthTek was then known as Vertus Asset Management LLP.

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.

WealthTek LLP was regulated by the FCA from 28 January 2020 until 4 April 2023 when the FCA took action to order the firm to cease operations and to appoint Special Administrators.