UK wealth manager Dolfin Financial has entered special administration, after the Financial Conduct Authority (FCA) placed restrictions on its activities.

Smith & Williamson was appointed as special administrator for Dolfin Financial, following previous FCA restrictions imposed on the firm.

At the time of its collapse, Dolfin had £120m of client money and £1.3bn of custody assets on its books. It provided investment management, investment advisory, execution-only and custody services to a range of clients.

On 12 March 2021 the FCA imposed restrictions on Dolfin's ability to conduct regulated activities. Since then, the board have been attempting to wind down the business and, subject to consent from the FCA, transfer client monies and assets to a new provider, if appropriate.

Smith & Williamson said that due to a reassessment of the company's financial position in the light of progress with its wind down plan, Dolfin's board agreed to place the business into special administration in early June.

Adam Stephens and Kevin Ley of Smith & Williamson were appointed joint special administrators of Dolfin on 30 June 2021.

In a statement Stephens said: "The priority for the joint special administrators is to identify, protect and in due course return client money and custody assets to clients in accordance with their interests.

"The joint special administrators are continuing to hold detailed discussions with the intended acquirer with a view to finalising the terms of any transfer."

Ley added: "We recognise that the present circumstances will understandably cause some uncertainty for clients and we thank them in advance for their patience and understanding while we work as quickly as possible to verify the company's financial position."

Dolfin has around 500 clients and 30 staff.

First published by our sister title Investment Week