The Financial Conduct Authority (FCA) has issued a final notice censuring Sapia Partners LLP after finding it failed to put adequate safeguards in place to protect client money linked to WealthTek’s activities. Sapia has agreed to make a voluntary payment of GBP 19,637,950 to be distributed to WealthTek clients who have a shortfall in the funds they have been able to reclaim. The FCA found Sapia did not properly separate key client money roles, with individuals able to make payments from client money accounts also carrying out FCA-required checks on those accounts, increasing the risk of client money being lost through misuse or poor management. The FCA did not impose a financial penalty, citing Sapia’s cooperation and its agreement to fund the customer payment (with assistance from its ultimate parent company), but said it otherwise would have imposed a GBP 7,412,000 penalty (after a 30% settlement discount). Of the GBP 19.6m payment, WealthTek’s administrators will receive GBP 19.1m and the Financial Services Compensation Scheme will receive GBP 500,000 under its statutory recovery duties. The FCA said it concluded its investigation in 12 months and reiterated firms’ obligations to comply with Principle 10 and the client money rules in the Client Assets Sourcebook, including for client money received from appointed representatives. Separately, the FCA noted its criminal proceedings against WealthTek’s former principal partner, with a trial scheduled for September 2027.
Financial Conduct Authority 2026-04-23
Financial Conduct Authority censures Sapia and secures £19.6m voluntary payment for WealthTek client money shortfalls
The Financial Conduct Authority has issued a final notice censuring Sapia Partners LLP for failing to implement adequate safeguards to protect client money linked to WealthTek’s activities, but did not impose a financial penalty given Sapia’s cooperation and agreement to fund remediation. Sapia will make a voluntary payment of GBP 19,637,950, of which GBP 19.1m will go to WealthTek’s administrators and GBP 500,000 to the Financial Services Compensation Scheme, to address shortfalls in client funds. The FCA reiterated firms’ obligations under Principle 10 and the Client Assets Sourcebook and noted ongoing criminal proceedings against WealthTek’s former principal partner.