Sapia Partners has agreed to pay more than £19m to WealthTek clients after failing to protect client money.
The FCA has censured Sapia after finding the firm did not put enough safeguards in place to protect client money after being appointed one of WealthTek’s representatives in 2017.
The hosting platform has admitted it failed to properly separate key roles within its business relating to client money and will make a voluntary payment of £19,637,950 to WealthTek clients who have a shortfall in the money they have been able to reclaim.
Separately, the FCA charged WealthTek’s principal partner with multiple criminal offences, including money laundering and fraud, in December 2024. A trial has been scheduled for September 2027 at Southwark Crown.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: “Poor safeguards around client money create opportunities that bad actors can exploit. Sapia’s failures exposed clients to an unacceptable risk of losing their money.
“We decided not to impose a fine on Sapia because of its exemplary cooperation and its acceptance that it should make a voluntary payment to affected customers.”
