FSCS will likely pay out over WealthTek's £81m shortfall

The lifeboat fund said in an update last week (14 September) that it is likely to pay out the costs of returning client money and the costs of transferring any assets to a new broker. WealthTek administrators BDO found an £81.4m shortfall in client money and asset accounts in May 2023, which means the FSCS may now cover this deficit. The FSCS confirmed in the update that it will "likely meet any losses suffered" from shortfalls where WealthTek did not hold the client assets and money it "had undertaken to hold for that customer". "We have been continuing to work closely with the jo...