Smith & Williamson has been appointed administrator of Dolfin Financial UK.
Adam Stephens and Kevin Ley will be in charge of the process as joint special administrators of the independent wealth management firm.
As of 30 June 2021, Dolfin had 30 members of staff and around 500 clients with monies of approximately £120m and custody assets of around £1.28bn ($1.8bn, €1.5bn), Smith & Williamson said.
On 12 March 2021, the Financial Conduct Authority imposed restrictions on the wealth manager’s ability to conduct regulated activities.
The firm’s Tier 1 investor visa activity and financial crime controls were the main areas of concern for the UK regulator. Dolfin was ordered to stop carrying out regulated activities and to not reduce the value of its assets, client money or custody assets it held.
In early June 2021, following a reassessment of the company’s financial position, the board started the process of insolvency process. Dolfin has also been looking for a successor service provider.
Uncertainty
Adam Stephens said: “The priority for the joint special administrators is to identify, protect and in due course return client money and custody assets to clients in accordance with their interests.
“The joint special administrators are continuing to hold detailed discussions with the intended acquirer with a view to finalising the terms of any transfer.”
Kevin Ley added: “We recognise that the present circumstances will understandably cause some uncertainty for clients, and we thank them in advance for their patience and understanding while we work as quickly as possible to verify the company’s financial position.”
The FCA said that the joint administrators are currently working with the Financial Services Compensation Scheme to “determine whether FSCS protection may exist for Dolfin’s clients”.
