Caceis UK pays $42 million to settle WealthTek client losses

Credit Agricole’s asset servicing arm, Caceis UK, has agreed to pay £31.7 million to clients of the collapsed wealth manager WealthTek. The move follows a censure from Britain’s Financial Conduct Authority, which found the bank failed to address red flags that exposed investors to potential financial crime.

Today, 17:29· Money Talk· 373 reads

The payment brings the total recovery fund for WealthTek clients to £57 million. The FCA opted against a formal fine, noting Caceis UK’s voluntary cooperation throughout a 13-month investigation into the firm’s oversight failures. Caceis UK served as WealthTek’s sub-custodian starting in November 2020, but regulators found the bank opened and maintained accounts for the firm despite clear evidence that WealthTek lacked authorization to hold specific client assets.

This marks the third enforcement action taken by the FCA since WealthTek ceased operations in 2023. Barclays previously paid over £9 million in fines and voluntary contributions, while Sapia Partners contributed £19.64 million after similar failures in client safeguards. WealthTek’s principal partner faces a 2027 trial on charges of fraud and money laundering. For its part, Caceis UK stated it has reviewed its internal procedures and remains committed to fraud prevention standards, though no formal remediation plan was mandated by the regulator.

Caceis UK pays $42 million to settle WealthTek client losses

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