FCA shuts down Wealthtek over ‘serious regulatory issues’
The City watchdog has moved to shut down financial advisor Wealthtek and police have arrested one individual after “serious regulatory and operational issues” were uncovered at the firm.
In a statement, the Financial Conduct Authority said today that it had taken “urgent steps” and ordered the Newcastle-based firm to “cease carrying on all regulated activities.”
Northumbria Police, working in partnership with the FCA, arrested a man aged 48 in connection with the concerns and the FCA later interviewed the individual under caution, the regulator said in its statement.
It did not give further details on the issues at the wealth manager.
“The FCA has taken urgent steps with the High Court to successfully appoint Interim Managers […] to take control of Wealthtek Limited Liability Partnership, which also has the trading names Vertem Asset Management and Malloch Melville,” the regulator said.
The FCA said it was in “close contact with the firm and the interim managers regarding the fair treatment of customers” and further information would be “made available by them in due course”.
Accountancy firm BDO has been appointed to take control of Wealthtek on an interim basis.
“Whilst under the management and control of the Joint Interim Managers, Wealthtek will cease all regulated activity save with the consent of the FCA,” Wealthtek said in a statement on its website.
“The Joint Interim Managers are working closely with the FCA as they carry out their duties,” it added.