Emma RadmoreThe FCA has censured CACEIS UK for failing to act on information that meant WealthTek clients were exposed to financial crime risks. The firm will make a voluntary payment of £31.7m to WealthTek clients. The firm, an asset servicing bank previously known as Vertus Asset Management, became WealthTek’s sub-custodian in late 2020.
The firm checked the FS Register 3 times. The Register stated that WealthTek was not authorised to hold client funds but the firm did not take sufficient action. Nor did it notice that WealthTek was not allowed to hold client money and opened client accounts for WealthTek to use – and then failed properly to monitor those accounts.
Therese Chambers said the firm had co-operated extensively and agreed the voluntary payment, which is why the FCA did not impose a fine.
The FCA has now secured over £57m to WealthTek clients through 3 actions, and concluded this latest action within 13 months.