FCA: Collapsed DFM targeted DB business for high risk bond investments

Entered administration 5 August

Hannah Godfrey
clock • 1 min read

Collapsed wealth and discretionary management firm SVS Securities encouraged advisers to promote risky model portfolios for clients moving from DB pensions, the FCA has claimed.

SVS was placed in special administration by its directors on 5 August after the Financial Conduct Authority (FCA) "identified serious concerns about the way the business was operating".  The regulator has since published a supervisory notice that claimed SVS Securities encouraged advisers to promote its own model portfolios as an investment solution specifically for clients who were moving from a defined benefit (DB) pension or carrying out a self-invested personal pension switch. According to the notice, SVS increased the proportion of "illiquid and high-risk" bonds in its model port...

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