The Financial Services Compensation Scheme (FSCS) is to open further investigations into failed wealth manager WealthTek as it makes ‘substantial progress’ on client payouts.

The former principal partner of wealth manager WealthTek, John Dance, is to stand trial in connection with allegations of a £64m fraud and money laundering charges.

Clients of failed Newcastle-based wealth manager WealthTek LLP will make a smaller contribution to the costs of the administration than previously estimated, after a fresh judgment in the case last week.

The Financial Services Compensation Scheme has made a first payment of £26.6m to the Joint Special Administrators of failed Newcastle-based wealth manager WealthTek LLP.