25 Feb How Whiskey & Wealth Club secure and protect your cask investment
The reasons for whiskey ownership are as diverse as the spirit itself. Whether an individual wishes to own or profit from a private stock; a store, pub or hotel chain creating its own exclusive marque; or a connoisseur putting back reserves to hedge against potential future shortages. Whatever your motivation, Whiskey & Wealth Club delivers the complete package of cask whiskey ownership.
All investors want security in their investments, and at Whiskey & Wealth Club we take compliance and safety very seriously. Here I will take you through the various regulations and processes we follow to ensure your investment is protected.
One of the most frequent questions we’re asked by potential investors is, ‘are you regulated by the FCA?’. In the UK, FCA does not currently regulate the wholesale buying and selling of cask whiskey. The buying/selling of cask whiskey falls under HMRC regulation. Whiskey & Wealth Club, however, aim to adhere to as many of the standard FCA checks as possible.
Before accepting an individual or entity as a client, we conduct various extensive checks including Anti-Money Laundering (AML) and Know Your Customer (KYC). We have a full due-diligence protocol in-house.
We also ensure we are dealing with reputable distilleries and excise warehouses, who must follow strict laws imposed by HMRC. Using HMRC approved cask accounting systems such as DRAMS to make sure no cask number can be duplicated. This technology also gives full visibility of maturing whiskey – down to the location of every cask. With audit trails to keep records in order, and DRAMS even completes Government Excise Reports.
Amongst other checks and balances like HMRC distillery audits, regular site visits from Whiskey & Wealth Club and our clients, and through many other regulations, we can ensure clients holding casks are protected.
Companies dealing in wholesale whiskey brokering must hold appropriate licences with HMRC and undergo a rigorous application process to do so. A licence called a WOWGR must be held. Should any firms you speak to not have a WOWGR, buyer beware.
What we’ve tried to do, is become as complaint under HMRC and FCA regulations as possible. Whiskey & Wealth Club took exactly 8 months using the top specialists in the country to attain a WOWGR. It’s not an easy process. It requires in-person interviews with HMRC, site visits, background information, business plans and applications the size of a phone book. Additionally, we have strict processes in place ongoing to meet the standards HMRC sets out.
We’re regulated for the information we store, where it’s stored and how it’s stored. Far deeper than the usual GDPR regulations. We invested over €150,000 to upgrade our office to a fully paperless operation with a custom-built CRM to adhere to these strict regulations.
Protecting our clients
At Whiskey & Wealth Club we want to set the standard. By going the extra mile to build a financial crime programme that underpins all company activity, means not only are we doing the right thing, but so are the people we’re working with. Inviting the right type of clients on board and providing them with comfort. We have a wealth of knowledge and are available to answer all your questions. Putting the protection of our customers at the forefront of every interaction.
Learn more about cask whiskey investment and our process on the Whiskey & Wealth Club website.