Credit Agricole's Caceis UK censured, pays $42 million to WealthTek clients
By Kirstin Ridley
FCA Censure and Payments to WealthTek Clients
LONDON, June 25 (Reuters) - Credit Agricole's Caceis UK, an asset servicing bank, will pay £31.7 million ($42 million) to clients of failed British wealth manager WealthTek, bringing to £57 million the total secured so far by Britain's financial markets watchdog.
Details of the FCA Censure
The Financial Conduct Authority on Thursday censured Caceis UK, which became WealthTek's sub-custodian in November 2020, for failing to act on information that left clients exposed to risks of financial crime. It is the watchdog's third enforcement action since WealthTek's collapse in 2023.
Voluntary Payment and Investigation
The FCA did not impose a fine, citing Caceis UK's voluntary payment and "extensive co-operation" during a 13-month investigation.
Distribution of Funds to Clients
The third voluntary contribution secured by the FCA since it ordered WealthTek to cease operations and appoint special administrators will be distributed to WealthTek clients who have not recovered their funds in full.
Caceis UK Response and Regulatory Actions
Caceis said in a statement that it remained committed to fraud prevention and treating customers fairly, adding it had reviewed its procedures and that no specific remediation plan had been requested by the regulator.
Previous FCA Enforcement Actions
Barclays Fine and Voluntary Payment
The FCA fined Barclays more than £3 million last July for poor handling of financial crime risks linked to a client money account opened by WealthTek. The British bank also made a voluntary £6.3 million payment.
Sapia Partners' Censure and Payment
Sapia Partners, a financial services firm, followed with a £19.64 million voluntary payment in April after being censured for inadequate client safeguards.
Failures Identified by the FCA
The FCA said Caceis UK did not take sufficient action after identifying that WealthTek was not authorised to hold certain client assets, did not spot it was barred from holding client money and, nevertheless, opened client accounts for the firm that it then failed to properly monitor.
Legal Proceedings Against WealthTek's Principal Partner
WealthTek's principal partner was charged in 2024 with offences including fraud and money laundering. A London trial is scheduled for 2027.
Additional Information
($1 = 0.7595 pounds)
(Reporting by Kirstin Ridley. Additional reporting by Ankita Bora in Bengaluru. Editing by Mark Potter)
