CACEIS UK, the asset-servicing arm of French banking giant Crédit Agricole, has agreed to pay £31.7mn to compensate clients of collapsed wealth manager WealthTek. The Financial Conduct Authority accepted the voluntary payment to resolve its investigation into the bank's failure to prevent alleged fraud, avoiding a formal fine that would have totaled £23.1mn after discounts.

WealthTek entered administration in 2023 after founder John Dance allegedly misappropriated £64mn in client funds between 2014 and 2023. Dance faces nine criminal charges including fraud and money laundering, with prosecutors claiming he used client money to purchase racehorses and a Newcastle nightclub. He has pleaded not guilty, with trial scheduled for September 2027.

The FCA found that CACEIS UK ignored warnings on its register that WealthTek was not authorized to hold client funds, failing to monitor accounts properly or respond to internal alerts. Therese Chambers, FCA's joint executive director of enforcement, stated the bank's failures exposed clients to serious risk despite cooperating with investigators.

This payment brings total compensation for WealthTek victims above £57mn, following previous settlements from Barclays (£6.3mn) and Sapia Partners (£19.6mn). The case demonstrates how inadequate oversight can leave retail investors vulnerable even when dealing with major financial institutions.