The joint special administrators (JSAs) managing WealthTek’s insolvency have reported positive client outcomes for people who lost money due to their dealings with Wealthtek.
The Financial Services Compensation Scheme (FSCS) in a statement on May 13th reported that most clients eligible for compensation due to shortfalls in their money and assets stemming from their dealings with WealthTek have now received their payouts. Under the court-approved distribution plan, the FSCS is directly covering the JSAs’ cost contributions for these clients, with a maximum compensation limit of £85,000 per individual, inclusive of the cost contribution.
FSCS to Explore Additional Claims Against WealthTek
As is often the case the FSCS noted that some clients may have losses exceeding the £85,000 cap and therefore may not receive their full compensation via the FSCS alone.
It encouraged clients who have not yet contacted the JSAs, the designated broker, or provided alternative instructions for asset returns to do so promptly to expedite the release of remaining funds, assets, and shortfall compensation.
The FSCS expressed gratitude, stating, “We greatly appreciate the patience shown by clients during this challenging time.” Moving forward, the FSCS plans to investigate potential additional claims against WealthTek, such as those related to the firm’s actions or oversights that caused investment losses. Any prior compensation, including payments via the JSAs, will be considered in these assessments.
What to do if you haven’t had full compensation from a Wealthtek claim
Look for any related regulated parties involved such as, the source of your funds (Bank, Pension, Investment Platform) to Finance Brokers, Financial Advisers and the administrators themselves.
Financial services claims such as these can be complex as there can be lots of regulated parties involved such ads trustees, custodians, administrators, insurance provider… the list goes on.
If you have not yet received compensation for a claim involving Wealthtek or any financial services institution and are not sure where to start, book a free 30 minute no-obligation consultation with one of our experts today.
Background on WealthTek’s Collapse and Regulatory Action
You can review more on Wealthtek claims on our dedicated page here.
