The Financial Conduct Authority has banned Demetrios Hadjigeorgiou from holding senior management positions in financial services and fined him £56,400 over failures at former discretionary fund manager SVS Securities Plc.

The case has also resulted in regulatory action outside the UK. Earlier, the Dubai Financial Services Authority banned former SVS CEO Kulvir Virk from performing any function connected with financial services in or from the Dubai International Financial Centre.

FCA Bans Former SVS Executive

Hadjigeorgiou was SVS’s finance director before becoming CEO. He served in the role until shortly before the firm entered special administration.

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The FCA said Hadjigeorgiou failed to properly manage SVS and protect customers’ interests. The firm invested customer money, including pension savings, in high-risk products while receiving significant payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term from the companies that issued them.

Hadjigeorgiou also failed to challenge a decision to reduce the value of customers’ bond investments by 10% when they sought to sell them. The reduction generated £359,800 for SVS, while customers were not clearly informed about it. Some consequently lost part of their pension savings.

The regulator found that Hadjigeorgiou failed to exercise due skill, care and diligence in managing SVS.

The latest action follows an FCA Decision Notice that proposed an £84,600 penalty and a prohibition order. Hadjigeorgiou referred the decision to the Upper Tribunal but later settled with the FCA and withdrew his referral. The final penalty was reduced to £56,400.

SVS Collapse Leaves 879 Customers Exposed

SVS entered special administration and was later dissolved. The FCA said 879 customers had invested a combined £69.1 million in bonds through the firm. The bonds later defaulted, leaving customers unlikely to recover more than a fraction of their investments.

The FCA also took action against former SVS CEO and majority shareholder Virk and former head of compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term David Stephen over their roles in the treatment of customer pension funds. Virk was fined £215,500 and permanently banned from UK financial services.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: "Building up a pension for retirement is one of the most important investments you can make."

She added: "Where senior leaders fail to put customer interests first, we will act."