FCA Bans and Fines Former SVS Securities CEO Over Pension Mismanagement

The UK Financial Conduct Authority (FCA) has banned Demetrios Hadjigeorgiou from holding senior management positions in the financial services sector and imposed a financial penalty of £56,400. Mr Hadjigeorgiou served as director and chief executive officer of discretionary fund manager SVS Securities Plc (SVS) from May 1, 2018, to August 7, 2019. According to the regulator, Mr Hadjigeorgiou failed to properly manage the firm and neglected to protect the interests of its customers. Under his leadership, SVS allocated customer funds, including retirement pension savings, into high-risk investment products while the firm received significant payments from the product issuers. The FCA also highlighted that Mr Hadjigeorgiou failed to challenge a policy that imposed an undisclosed 10% reduction on the value of customers' bond investments when clients chose to sell them. This undisclosed fee structure generated £359,800 for SVS at the direct expense of its clients, causing a number of investors to lose parts of their pension pots. Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA, stated that retirement savings represent one of the most critical investments individuals make. She noted that Mr Hadjigeorgiou put people's savings at risk and left individuals worse off in retirement, reinforcing that the regulator will hold senior leaders accountable when they fail to put customer interests first. The disciplinary action was finalized after Mr Hadjigeorgiou reached a settlement with the regulator and withdrew his referral to the Upper Tribunal. SVS Securities Plc originally entered special administration on August 5, 2019, and was formally dissolved on August 10, 2023. The FCA determined that Mr Hadjigeorgiou breached Statement of Principle 6 by failing to exercise due skill, care, and diligence, prompting the enforcement order under sections 56 and 66 of the Financial Services and Markets Act 2000.