Statement 31 May 2023

Joint Special Administrators’ Report

Yesterday, on the 30 May 2023, the Joint Special Administrators’ Report and Statement of Proposals in relation to WealthTek LLP (In Investment Bank Special Administration) (the “Report”) was published. A copy of the Report can be found here. You may have received a copy of the report directly from the JSAs.

The Report is an initial report and sets out the background to the administration of WealthTek LLP, together with the Joint Special Administrators’ (“JSAs”) findings to date.

The JSAs have also convened a meeting of clients (which includes you) and creditors to be held on 14 June 2023 in order to vote on a number of proposals and establish a client and creditor committee (“Client and Creditors Committee”).

The key points of the Report to note are.

  • We are engaged with the JSAs to ensure that, as your discretionary investment manager, we are able to vote in respect of all of your holdings. We will update you as soon as possible as to whether we need to take further instructions from you.
  • We will be seeking a position to represent Stellar and its clients at the Clients and Creditors Committee and will be attending that meeting in person. We hope to use this as a platform to help drive a timely and cost-effective outcome to this process.
  • The Report headlines a potential substantial shortfall in client assets and client money. However, it should be noted that the JSAs work in this area is not complete and there appears to be a large amount of further work to be undertaken in order to reconcile client assets.
  • The report is clear that any shortfall in client assets is unlikely to be borne equally by all clients; not all clients will be exposed to those assets that have a shortfall, so it is therefore likely that any shortfalls will represent a higher burden on some clients than others.
  • The Financial Services Compensation Scheme(“FSCS”) is engaged in this process, and should it become necessary, we will work tirelessly to ensure this part of the resolution is both simple and effective for all affected clients.
  • The JSAs have requested certain information and assistance from Mr Dance; at the time of writing this report, the JSAs have received very little engagement from him, limited to letters received from Mr Dance’s lawyers containing no substantive information.


The report is not a definitive outcome. There remains substantial work for the JSAs to ascertain and reconcile client assets and client money. Until this is complete, the JSAs indicate, and we agree that we cannot reach a conclusion on precise impact for our clients.

We will seek to be more involved through the Client and Creditor Committee and in any event expect to be able to share more information after this meeting has been held in a few weeks.

Statement 09 May 2023

From 10 May 2023, all users will lose access to the WealthTek portal because of a certificate expiry, the renewal of which is outside our control.

Client valuations to 31 December 2022 are available from the portal at

Any other historical documents, if available, can be requested via


Client valuations to 31 December 2022 are available from the portal at

We no longer have access to online valuations whilst the JSAs perform their work and, from 10 May 2023, all users will lose access to the WealthTek portal.

Until this is complete, no further valuations will be issued and tax statements for the year to 5 April 2023 will follow as soon as we are able.

Statement 24 April 2023

This week we have continued our dialogue with both BDO and the FCA.

We have been asked by BDO to make the attached letter available to all investors which has been covered by our FAQs.

May we take this opportunity to remind you that we are unlikely to have any substantive update until June.

Statement 17 April 2023

Since our last communication, we can report the following.

Special Administration

With effect from 6 April 2023, WealthTek, also trading under the names Vertem Asset Management and Malloch Melville, was placed into Special Administration following an application to the High Court by the Financial Conduct Authority (“FCA”).

Shane Crooks, Mark Shaw and Emma Sayers, licensed insolvency practitioners from BDO LLP, have been appointed as Joint Special Administrators (the “JSAs”).

The JSAs are now responsible for the affairs of WealthTek.

WealthTek remains regulated by the FCA, albeit certain restrictions are now in place to prevent the LLP (including under its other trading names) from undertaking any regulated activities.

The JSAs are working closely with the FCA as they carry out their duties.

Management fees

Whilst the portfolios are frozen, Stellar will not be charging any management fees.

In addition, Stellar has not been paid management fees since 1 January 2023. These are normally paid quarterly in arrears.

Adviser charging

Whilst the portfolios are frozen, we are unable to levy any ongoing adviser charges.

All ongoing adviser charges have been paid until 31 December 2022 and we are unable to collect ongoing adviser charges on your behalf whilst the portfolios are frozen.


Client valuations to 31 December 2022 are available from the portal at

We no longer have access to online valuations whilst the JSAs perform their work.

Until this is complete no valuations will be issued and tax statements for the year to 5 April 2023 will follow as soon as we are able.


We remain in dialogue with both the JSAs and the FCA and supporting them both in their work.

We have produced a Q&A document which is available here, based on the information known at this date. We will update this with further information when it becomes available.

We intend to update this webpage weekly on a Monday and we will notify you by email when an update is posted.

Statement 13 April 2023

Stellar Asset Management has been informed that BDO LLP were appointed as Joint Special Administrators of WealthTek LLP on 5 April 2023. The FCA made an announcement to this effect on 6 April 2023. We have also been informed that WealthTek has ceased all regulated activities with immediate effect as of 4 April 2023.

We will of course provide regular updates to all advisors and their investors as matters progress, however, in the meantime, if you have any queries or concerns, please do not hesitate to contact us at .

Statement 11 April 2023

Late afternoon, 5 April 2023, Stellar Asset Management Limited (“SAM”) was informed by BDO LLP, 55 Baker Street, London W1U 7EU that members of its firm had been appointed as joint Interim Managers (“the JIMs”) of WealthTek LLP, pursuant to Regulation 7(1)(d) of the Investment Bank Special Administration Regulations 2011.

WealthTek LLP (“the LLP”) was appointed by SAM to act as custodian and to provide related services for clients in relation to our AIM IHT Portfolio Service.

We have been advised by the JIMs that whilst under the management and control of the JIMs, the LLP will cease all regulated activity.

We understand that pending the outcome of a hearing between the LLP and the FCA, clients can still access the client portal to view their investments.

We have been advised by the JIMs that following the cessation of regulated activity, no trading can take place on any of the accounts, including purchases, sales, top-ups, or withdrawals.

On 6 April 2023, the following was published by the FCA.

“The FCA has taken urgent steps with the High Court to successfully appoint Interim Managers (the High Court appointed Shane Crooks, Mark Shaw and Emma Sayers of BDO LLP) to take control of WealthTek Limited Liability Partnership (WealthTek), which also has the trading names Vertem Asset Management and Malloch Melville.

The FCA has also ordered the firm to immediately cease carrying on all regulated activities, following serious regulatory and operational issues coming to light.

The appointment of BDO LLP is interim pending a further court hearing.

Northumbria Police, working in partnership with the FCA, arrested a man aged 48 in connection with these concerns and the FCA later interviewed the individual under caution.

WealthTek is an FCA authorised and regulated wealth management firm which provides discretionary, advisory and execution only services to their retail clients.

The FCA is in close contact with the firm and the interim managers regarding the fair treatment of customers and further information will be made available by them in due course.”

We apologise for the disruption and uncertainty caused by this announcement. We are urgently seeking further information from both the JIMs and the FCA.

Our priority is to work with the JIMs to ascertain the security of all client assets and ensure that management of the accounts can be re-established as soon as possible. We will ensure that we update all concerned parties as soon as we are able.

We will hold regular updates for all advisers and their investors and will provide details of how to access these as soon as possible.

If you have any queries, please contact us at or call
us on 0203 195 3500.