A firm founded by prominent racehorse owner John Dance has been ordered to cease operations by the Financial Conduct Authority.
Vertem Asset Management is one of three trading names for WealthTek LLP.
The FCA says a 48-year-old man, who has not been named, was arrested by Northumbria Police after “serious regulatory and operational issues” came to light at WealthTek.
Dance, who founded Vertem in 2010, has not commented.
He owned the Group One-winning mare Laurens and is co-owner of the King George VI Chase winner and Cheltenham Gold Cup runner-up Bravemansgame.
His company took over the sponsorship of Doncaster’s big October juvenile race, which has been known as the Vertem Futurity Trophy since 2018.
In 2021, Dance bought Manor House Stud in Middleham, North Yorkshire, and installed James Horton as his private trainer.
The FCA says it has taken “urgent steps with the High Court” to appoint interim managers to take control of Newcastle-based WealthTek.
The High Court appointed Shane Crooks, Mark Shaw and Emma Sayers of BDO LLP to take charge, 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,” said a FCA statement.
“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.”
