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FSCS ‘expects’ to pay out claims against collapsed Newcastle fintech WealthTek

Courtesy FSCS/Facebook

The Financial Services Compensation Scheme (FSCS) has said it expects to pay out claims against Newcastle’s collapsed £233m wealth management fintech WealthTek.

The lifeboat fund said in a new update: “We expect that there will be some claims that meet the qualifying conditions for compensation.”

The Financial Conduct Authority (FCA) ordered WealthTek to cease operations in April after it discovered “serious” regulatory and operational issues, and in June froze £40m in assets of the firm’s principal partner.

At the time of its administration, WealthTek was managing £233m of client assets.

Shane Crooks, Mark Shaw and Emma Sayers of BDO LLP have been appointed as joint special administrators of WealthTek following an application by the FCA, and the FSCS has advised customers to check the administrator’s website for more details in the first instance, or contact them directly at WealthTekclients@bdo.co.uk or 0151 351 4700.

The FSCS update added: “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.”

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