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ARTICLE · 07 NOVEMBER 2024

FCA Cracks Down On SVS Securities Individuals Over Pension Fund Misconduct

Johnson Law Group
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The FCA has fined and banned three executives of SVS Securities Plc for misconduct, including conflicts of interest and mismanagement, which risked £69.1 million in customer investments. SVS prioritized its own income, funneling funds into high-risk bonds without due diligence.

United KingdomFinance and Banking
Johnson Law Group
Johnson Law Group

The Financial Conduct Authority (FCA) has decided to ban and fine three individuals involved in running SVS Securities Plc (SVS), a discretionary fund manager. The decision comes in response to severe misconduct that jeopardised the financial well-being of nearly 900 customers.

SVS Securities Plc managed investments on behalf of its customers, adhering to FCA rules that require firms to act in the best interests of their clients. However, the FCA's investigation uncovered that SVS deviated from these principles, driven by conflicts of interest and reckless management practices.

The former CEO and majority shareholder of SVS, Mr. Virk, orchestrated a complex business model aimed at funnelling customer funds into high-risk illiquid bonds. These bonds were managed by SVS directors and Mr. Virk's close business associate. The model included undisclosed commissions of up to 12% and inducements to SVS and unauthorised introducers, prioritising income for SVS over

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