FCA censures Sapia over WealthTek failings

The FCA has censured Sapia because of its failure to put in place sufficient safeguards over client money that emanated from WealthTek which was its appointed representative. Sapia admitted it did not properly separate key roles within its business which meant that people who could make payments from client money accounts also carried out compliance checks over those accounts.

However, the FCA has not fined Sapia because of the firm’s “exemplary cooperation” and because of its agreement to pay over £19m to WealthTek clients who had suffered loss.  WealthTek’s administrators will receive £19.1m, and the FSCS £500,000. The FSCS will distribute any surplus to eligible clients once it has finished all its recovery actions.