Failed WealthTek clients face reduction in costs contribution to £15,145

120 clients yet to engage in process to get assets returned

Isabel Baxter
clock • 2 min read

The joint special administrators (JSAs) of failed firm WealthTek have reduced the costs contribution per client to £15,135.

In an update posted on 2 December, BDO said a judgement on 28 November confirmed that the costs contribution under the WealthTek client distribution plan should not include a reserve for the costs of potential future litigation by WealthTek and/or the JSAs against third parties.  The court also confirmed that the JSAs, if not funded, do not have a duty to investigate or bring any potential claims on behalf of WealthTek as trustee. The judgment provided clarity on whether certain elements of previously incurred costs are allowable costs covered by the costs contribution.  Clients whose...

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