Context
The FCA has banned Demetrios Hadjigeorgiou, the former director and chief executive officer (CEO) of SVS Securities Plc (SVS), a discretionary fund manager, from working in senior management positions in financial services and fined him £56,400. Mr Hadjigeorgiou received an initial Decision Notice dated 25 April 2024, and the FCA took action against three individuals from SVS Securities for mistreatment of pension funds in June 2024.
Key points to note and next actions
- The FCA found that Mr Hadjigeorgiou failed to properly manage SVS and protect its customers’ interests. While he was CEO, the firm invested customers’ money, including pension savings, in high-risk products while receiving significant payments from the companies that issued them.
- Mr Hadjigeorgiou also failed to challenge a decision that reduced the value of customers’ bond investments by 10% when they decided to sell them. This generated £359,800 for SVS at the expense of its customers. Customers were not clearly told about this reduction and, as a result, some lost part of their pension savings.
- The ban and fine were imposed after Mr Hadjigeorgiou settled his case with the FCA and withdrew his referral to the Upper Tribunal.
- The FCA found that Mr Hadjigeorgiou breached Statement of Principle 6 by failing to exercise due skill, care and diligence in managing the business of SVS.