Following an attempt to wind down solvently, the directors of Dolfin applied to the Court to place the firm into special administration, with administrators appointed yesterday.

In March the FCA imposed restrictions on Dolfin which stopped it from carrying out any regulated activities due to concerns about the way it conducts its business. The restrictions also prevented it from reducing the value of its assets or any of the client money or custody assets it holds without the consent of the FCA.

London-based Dolfin provided a number of wealth management services to retail and professional clients including securities, such as shares, government and corporate bonds, and investment funds.

As at the date of special administration appointment, the Company employed 30 staff and had circa 500 clients with underlying client monies of £120m and custody assets of £1.28bn.

Adam Stephens and Kevin Ley of Smith & Williamson LLP have been appointed joint special administrators of the firm. They will write to clients and creditors in the next eight weeks, including explaining current restrictions to account access and details of the process of how to make a claim against the firm.

The Financial Services Compensation Scheme is currently working with the joint special administrators to establish whether FSCS protection may exist for Dolfin’s clients.

The firm also provided Tier 1 investor visa services which enable foreign investors to invest in the UK and secure a visa to live and work in the UK.

Dolfin was founded as a London-based wealth boutique in 2013 and evolved into a diversified financial services firm with an international presence and a bespoke technology platform.

The FCA said it had identified a number of serious concerns around the way that Dolfin operated its business, including the firm’s Tier 1 investor visa business activities and financial crime controls.

The regulator had been working with Dolfin while it took steps to try and address the concerns, including imposing voluntary restrictions on its regulated activities on 24 December 2019, and commissioning a Skilled Persons Review.

However, following the conclusion of the Skilled Persons Review and other developments, the FCA said it has determined that it is in the interests of protecting the integrity of the UK financial system to stop the firm from carrying out regulated activities.