The FCA has ordered Newcastle-based wealth manager WealthTek Limited Liability Partnership to cease all regulated activities following the discovery of regulatory and operational issues.

WealthTek (reference number: 832264) is an FCA-authorised and regulated wealth management firm which provides discretionary, advisory and execution-only services to its retail clients. 

WealthTek also trades under the names of Vertem Asset Management and Malloch Melville.

Northumbria Police, working with the FCA, has arrested a man aged 48 in connection with the investigation. He has been interviewed by the regulator under caution.

Under the restrictions placed on the firm this week, it can only carry out any further regulated activities with the express written consent of the FCA.

The wealth manager is also not allowed to onboard new customers and must write to its customers about the order within 72 hours.

The regulator has also taken steps, with the High Court, to appoint Shane Crooks, Mark Shaw and Emma Sayers of BDO LLP as interim managers to take control of the firm. The appointment of BDO is interim pending a further court hearing.

Vertem is an independent investment manager based in Newcastle upon Tyne, with a client base across the UK. Founded in 2010 by John Dance, Vertem specialises in creating bespoke, flexible and suitable investment portfolios for professional clients, private individuals, charities and pension funds. The firm works both directly with private clients and via intermediaries including IFAs.

Malloch Melville is an Edinburgh-based wealth manager and stockbroker offering both model and bespoke discretionary management. It was founded in 2015 by Jeremy Balfour-Melville and Thomas Malloch. The firm creates investment solutions for financial advisers, private individuals, family trusts, corporates, IHT portfolios, GIAs and SIPPs/SSAS.

The FCA said it is in close contact with WealthTek and BDO about the firm’s customers and that they will be contacted soon.

The regulator said any interested parties should contact the interim managers at BDO.