FCA bans and fines trio from defunct DFM SVS Securities

Bans and fines issued for mistreatment of pension funds

Jenna Brown
clock • 2 min read

Three senior executives from collapsed discretionary fund manager (DFM) SVS Securities (SVS) have been banned and fined by the Financial Conduct Authority (FCA).

The FCA said Kulvir Virk, the former CEO and majority shareholder, "recklessly" caused SVS to use a "complex business model intended to maximise the flow of customer funds into high-risk illiquid bonds".  It explained these bonds were operated by directors of SVS and a close business associate of Virk. The FCA added that the DFM's model involved inducements to SVS and unauthorised introducers with undisclosed commissions of up to 12% of the customers' investments. The model created systematic conflicts of interests and inappropriately prioritised income to SVS over the best interests ...

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