FCA Announces Dolfin Financial (UK)’s Special Administration

The UK Financial Conduct Authority (FCA) announced on June 30 that Dolfin Financial (UK) (Dolfin), an FCA authorised and regulated wealth management firm, has entered Special Administration for attempting to wind down solvent. And the Court appointed Adam Stephens and Kevin Ley, of Smith & Williamson LLP, as Joint Special Administrators of Dolfin.

To minimise disruption to clients, the Joint Special Administrators are seeking to find a suitable successor service provider. They will carry out an assessment of all the client money and custody assets held by the firm to confirm the current position. Also, thwy will write to clients and creditors with their proposals for the Special Administration within 8 weeks of their appointment, which was made on 30 June 2021. This will include the process of how they should make a claim.

Financial Services Compensation Scheme (FSCS), UK’s statutory fund of last resort for most failed financial services firms, is working with the Joint Special Administrators to determine whether FSCS-protection may exist for Dolfin’s clients.

If FSCS is able to provide cover to Dolfin’s clients, FSCS may be able cover any shortfall in client money or custody assets returned to eligible clients by the Joint Special Administrators, including covering the Joint Special Administrators’ costs in returning the client money or custody assets, up to a maximum of £85,000 per customer.  

The FCA decided that it was in the best interests of consumers to stop the firm from carrying out regulated activities. On 12 March 2021, the regulator issued Dolfin with a Supervisory Notice prohibiting it from carrying on any regulated activities.