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 ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
