The High Court has approved a plan to return client money and customer assets to clients of failed Newcastle-based wealth manager WealthTek.

Mr Justice Rajah in the High Court of Justice this week approved the Joint Special Administrators (JSAs) plan for returning client money and custody assets to WealthTek clients.

It is not clear how much will be returned to clients after an £81.5m gap in the firm’s finances was discovered last year.

Earlier this year the FCA launched a criminal investigation into Newcastle-based wealth manager WealthTek LLP.

The regulator took action last year to protect clients from “further harm” after it discovered “serious regulatory and operational issues” at the firm.

The administrators will be contacting clients to discuss next steps and any action they may need to take to access their money and investments.

The FCA has warned that clients should be alert to the risk of fraud. Details are on the FCA website.

WealthTek owner John Dance is the founder of the business and also a leading figure in British horse racing.

Administrators BDO LLP last year said they had uncovered an £81.5m gap in WealthTek’s finances. In April last year the FCA ordered WealthTek Limited Liability Partnership to cease all regulated activities following the discovery of regulatory and operational issues.

WealthTek (FRN: 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.

Vertem is an independent investment manager based in Newcastle upon Tyne, with clients across the UK. Founded in 2010 by John Dance, Vertem specialises in creating bespoke 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 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.

In September last year customers of collapsed Newcastle-based wealth manager WealthTek were told they were likely to have any losses refunded by the Financial Services Compensation Scheme up to the scheme’s £85,000 limit per person.