Skip to content
Search

Latest Stories

Mistreatment of funds: FCA penalises SVS Securities

SVS Securities had invested customer funds in high-risk illiquid bonds. But these bonds have since defaulted and the customers may get only a fraction of their investment back

Mistreatment of funds: FCA penalises SVS Securities

The Financial Conduct Authority (FCA) has banned three individuals who were involved in running SVS Securities Plc (SVS), a discretionary fund manager, for mismanaging customers' pension funds.

The FCA has decided to fine Kulvir Virk, the former CEO and majority shareholder, £215,500; Demetrios Hadjigeorgiou, former finance director, £84,600; and David Stephen, Head of Compliance, £52,100.


The watchdog has banned Virk from working in financial services, and banned Hadjigeorgiou and Stephen from holding senior management roles.

Virk had invested customer funds in high-risk illiquid bonds assuring high returns. Around 879 customers paid in a total of £69.1 million.

These bonds have since defaulted and the customers are unlikely to receive more than a fraction of their investment back.

The FCA has found that the three individuals decided to mark-down customers’ valuations when they disinvested from fixed income assets, with the result that SVS kept 10 per cent of customer funds.

This allowed them to generate £359,800 in income for SVS at the expense of its customers.

The watchdog felt that Stephen and Hadjigeorgiou failed to fulfill their responsibilities to ensure that SVS was following the rules, carrying out proper due diligence and there was no conflict of interest.

Hadjigeorgiou and Stephen have referred their Decision Notices to the Upper Tribunal where they will each present their respective cases.

They dispute many of the facts and any characterisation of their actions in Kulvir Virk’s Final Notice and have referred their Decision Notices to the Upper Tribunal.

FCA's joint executive director of Enforcement and Market Oversight Therese Chambers said: "These three individuals and SVS were a central part of a tangled web which concealed the fact that customers’ pension money was being invested into high-risk bonds. Customers were entitled to trust that SVS would act in their best interests, but it repeatedly prioritised income for itself and its associates."

More For You

Donald Trump

Speaking from the Oval Office, Trump said, 'What we’re going to be doing is a 25 per cent tariff on all cars that are not made in the US.'

Getty Images

Trump imposes 25 per cent tariffs on foreign-built cars

US president Donald Trump has announced a 25 per cent tariff on imported cars and auto parts, escalating trade tensions with key partners.

The new duties take effect on 3 April and apply to foreign-made cars and light trucks, with additional levies on key auto parts set to follow within the month.

Keep ReadingShow less
Starmer-Trump-Getty

The UK is negotiating a tech-focused trade deal with the US, which could help avoid direct tariff impacts.

Getty Images

UK economy faces pressure from Trump’s tariff threats

THE UK’s economy faces a major risk from US president Donald Trump’s proposed tariffs, the country’s fiscal watchdog warned on Wednesday, citing slow growth and a high debt burden as key vulnerabilities.

Chancellor Rachel Reeves announced cuts to the welfare budget and other spending reductions to meet a key fiscal target aimed at reassuring investors after the 2022 market turmoil under former prime minister Liz Truss.

Keep ReadingShow less
FCA's new five-year plan focuses on economic growth
Nikhil Rathi

FCA's new five-year plan focuses on economic growth

COUNTRY's financial watchdog has launched a new five-year strategy aimed at transforming financial regulation in the UK, focusing on supporting economic growth and improving consumer experiences.

The Financial Conduct Authority (FCA) on Tuesday (25) outlined four key priorities: becoming a smarter regulator, supporting economic growth, helping consumers make financial decisions, and combating financial crime.

Keep ReadingShow less
modi-trump-getty
Modi shakes hands with Trump before a meeting at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)

US trade officials in India for talks as tariff deadline nears

US OFFICIALS arrived in India on Tuesday for trade discussions ahead of the implementation of tariffs announced by president Donald Trump.

The meetings come as the US moves forward with reciprocal tariff measures affecting multiple countries, including India.

Keep ReadingShow less
modi-trump-getty
Modi shakes hands with Trump before a meeting at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)

India open to tariff cuts on £17.7 bn worth of US imports: Report

INDIA is considering cutting tariffs on more than half of US imports valued at £17.7 billion as part of ongoing trade negotiations, two government sources told Reuters.

The move, which would be the most significant tariff reduction in years, is aimed at countering reciprocal tariffs.

Keep ReadingShow less