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FCA censures CACEIS UK
30 June 2026 UK
Image: Pakhnyushchyy/stock.adobe.com
Caceis UK has been censured by the Financial Conduct Authority and will provide a £31.7 million voluntary payment to WealthTek clients for failing to act on information that left clients vulnerable to the risk of financial crime.
If the firm had not co-operated and agreed to make the voluntary payment toward WealthTek’s clients, the FCA would have penalised the firm £23,091,000.
The financial watchdog accused CACEIS UK of not taking adequate action after reviewing the Financial Servicers Register on three separate occasions, which displayed WealthTek as lacking the authorisation to hold specific assets.
The 13-month investigation also found that the asset servicing bank failed to identify that WealthTek was not permitted to hold client money.
Nonetheless, the bank proceeded with opening client accounts for WealthTek to use.
According to the FCA, it then did not adequately monitor these accounts and failed to efficiently evaluate and address alerts notified by their system.
CACEIS UK was appointed WealthTek’s subcustodian in November 2020, obliging them to ensure its client’s assets were safe.
The voluntary payment will be given to WealthTek clients who have been unable to reclaim the full amount of money.
It brings the total to £57 million secured by the financial regulator for WealthTek clients in just over 12 months, from action lodged against CACEIS UK, Sapia Partners, and Barclays Bank UK.
WealthTek was ordered by the FCA to cease operations in 2023 following serious regulatory and operational issues.
Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA, remarks: “Strong financial crime controls keep clients’ assets safe. CACEIS UK’s failures exposed clients to serious risk.
"The firm chose to do the right thing with extensive co-operation and agreeing to a substantial voluntary payment, and we decided not impose as a result.”
If the firm had not co-operated and agreed to make the voluntary payment toward WealthTek’s clients, the FCA would have penalised the firm £23,091,000.
The financial watchdog accused CACEIS UK of not taking adequate action after reviewing the Financial Servicers Register on three separate occasions, which displayed WealthTek as lacking the authorisation to hold specific assets.
The 13-month investigation also found that the asset servicing bank failed to identify that WealthTek was not permitted to hold client money.
Nonetheless, the bank proceeded with opening client accounts for WealthTek to use.
According to the FCA, it then did not adequately monitor these accounts and failed to efficiently evaluate and address alerts notified by their system.
CACEIS UK was appointed WealthTek’s subcustodian in November 2020, obliging them to ensure its client’s assets were safe.
The voluntary payment will be given to WealthTek clients who have been unable to reclaim the full amount of money.
It brings the total to £57 million secured by the financial regulator for WealthTek clients in just over 12 months, from action lodged against CACEIS UK, Sapia Partners, and Barclays Bank UK.
WealthTek was ordered by the FCA to cease operations in 2023 following serious regulatory and operational issues.
Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA, remarks: “Strong financial crime controls keep clients’ assets safe. CACEIS UK’s failures exposed clients to serious risk.
"The firm chose to do the right thing with extensive co-operation and agreeing to a substantial voluntary payment, and we decided not impose as a result.”
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