Just a day after the UK Financial Conduct Authority (FCA) confirmed that Dolfin Financial (UK) Ltd has entered administration, the Financial Services Compensation Scheme (FSCS) has posted a brief update on the matter.
At this point, FSCS is in the early stages of investigating whether there are any claims that meet the qualifying conditions for compensation. As part of this investigation, FSCS is working closely with the Joint Special Administrators.
Dolfin is an independent wealth management firm. It provides investment management, investment advisory, execution-only and custody services.
On 12 March 2021, the FCA imposed restrictions on Dolfin. This meant it could not conduct its regulated activities in the normal way.
The FCA has been working with Dolfin while it took steps to try and address these 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 developments that have taken place since, the FCA has determined that it is appropriate in the interests of protecting the integrity of the UK financial system to stop the firm from carrying out regulated activities and has imposed the restrictions.
Clients of Dolfin will not be able to trade, withdraw, transfer, or otherwise use their custody assets or client monies held by Dolfin while the restrictions are in place, without the consent of the FCA.
On 30 June 2021 it was placed in Special Administration following a court application.
The court application was made after it became clear that the company’s wind down should take place within a formal insolvency process. Adam Stephens and Kevin Ley of Smith & Williamson LLP were appointed Joint Special Administrators.