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FCA

FCA

Financial Conduct Authority (UK)

Medium Impact

FCA Final Notice: Former SVS Securities CEO fined and prohibited over retail pension portfolio failings

Published

Aug 18, 2026

Effective

Aug 17, 2026

Topics

Enforcement, Senior management accountability, Discretionary fund management, Retail pensions, Conflicts of interest, Inducements, Product governance, Customer communications

Executive Summary

The FCA has issued a Final Notice against Demetrios Christos Hadjigeorgiou, former CF1 Director and CF3 Chief Executive of SVS Securities Plc, imposing a £56,400 penalty and a prohibition from performing any senior management function or significant influence function in relation to regulated activities. The FCA found that, between 3 January 2018 and 2 August 2019, he breached APER Statement of Principle 6 by failing to exercise due skill, care and diligence in managing SVS’s discretionary fund management business. The case concerns retail pension customers invested through SVS model portfolios into high-risk, illiquid fixed income products, with material failings in conflicts management, inducements, due diligence, concentration risk and disclosure of a 10% fixed income disinvestment mark-down. The notice does not create new rules or reporting templates, but it is a significant enforcement signal for wealth managers, discretionary fund managers, SIPP-linked investment businesses and senior managers responsible for product governance, customer outcomes and financial promotions or disclosure controls.

What Changed

newFinal enforcement outcome for Demetrios Hadjigeorgiou

Previous

The FCA’s Decision Notice dated 25 April 2024 recorded a proposed financial penalty of £84,600 and was subject to a Tribunal reference.

New

The FCA imposes a final financial penalty of £56,400 and a prohibition from senior management and significant influence functions.

modifiedPenalty basis revised

Previous

The Decision Notice recorded a proposed £84,600 penalty.

New

The Final Notice imposes a £56,400 penalty, payable in 48 monthly instalments of £1,175 from 1 September 2026.

newSenior manager prohibition

Previous

No final prohibition order had been imposed while the matter remained unresolved.

New

The FCA prohibits him from performing any senior management function and any significant influence function in relation to regulated activities carried on by authorised or exempt persons or exempt professional firms.

newConfirmed findings on conflicts, inducements and product governance

Previous

The 2024 Decision Notice findings were provisional because they had been referred to the Upper Tribunal.

New

The findings against Mr Hadjigeorgiou are final, although the notice records that related criticisms of David Stephen remain disputed and subject to his Tribunal reference.

newCustomer disclosure failings on disinvestment pricing

Previous

Before November 2018, SVS did not charge customers when they disinvested from the model portfolios.

New

The FCA found that the mark-down generated £359,800 for SVS at the expense of disinvesting customers and was not properly communicated.

Business Impact

Who is affected

Directly affected

Demetrios Christos Hadjigeorgiou and any regulated firm assessing his fitness and propriety for senior management or significant influence roles.

Indirectly affected

UK discretionary fund managers, wealth managers, SIPP operators and trustees, firms using introducers or financial advisers to source retail pension customers, compliance teams, product governance committees and senior managers responsible for retail investment services.

Jurisdictions

United Kingdom

Business processes

Senior manager fitness and propriety assessment, Conflicts of interest identification, escalation and register maintenance, Retail investment product due diligence and target market assessment, Third-party commission, inducement and introducer payment approval, Discretionary portfolio concentration and liquidity monitoring, Customer disclosure of charges, spreads, mark-downs and disinvestment costs, Board and investment committee challenge and evidence retention

Estimated effort

Medium

Compliance risk

High

Affected Reports

Conflicts of Interest Register and escalation logProduct due diligence and target market assessment file for discretionary portfolio assetsInducements, third-party commission and introducer payment registerDisinvestment pricing, spread, mark-down and exit-cost disclosure controlSenior manager fitness, propriety and responsibility-map evidence pack
FieldValidation rule

Recommended Actions

7 suggested next steps· derived from source analysis
  1. 1
    AI generatedStep 1 of 7

    Review discretionary portfolio governance for high-risk or illiquid assets, including whether investment committees evidence independent challenge before customer funds are committed.

  2. 2
    AI generatedStep 2 of 7

    Test conflicts controls against the facts in the Final Notice, especially connected directors, related issuers, upfront payments, loans or commercial arrangements with product providers.

  3. 3
    AI generatedStep 3 of 7

    Reconcile all third-party commissions, marketing fees and introducer payments against COBS inducement restrictions for retail investment services and document any permitted basis.

  4. 4
    AI generatedStep 4 of 7

    Refresh product due diligence standards so that target market, liquidity, concentration, credit quality, underlying exposure and ongoing monitoring are assessed before investment decisions.

  5. 5
    AI generatedStep 5 of 7

    Validate that customer communications clearly disclose all exit charges, spreads, mark-downs and disinvestment costs in writing before customers make disinvestment decisions.

  6. 6
    AI generatedStep 6 of 7

    Require accountable senior managers to evidence challenge where commercial pressures, liquidity needs or revenue targets could compromise customer outcomes.

  7. 7
    AI generatedStep 7 of 7

    Update fitness and propriety screening to identify FCA prohibition orders and Final Notices when hiring or approving senior managers.

Timeline

effective date

Jan 3, 2018

Relevant Period begins; the Final Notice states that COBS 2.3A.15R and PROD 3.3.1R/3.3.3R were in force from this date for the matters considered.

other

Nov 2018

SVS Board decided to introduce a 10% mark-down on fixed income asset valuations when customers disinvested from the model portfolios.

other

May 30, 2019

SVS made a written disclosure referring to a wider spread, but the FCA found it did not specify the 10% mark-down rate.

other

Aug 2, 2019

Relevant Period ends; FCA imposed further requirements on SVS requiring it to cease all regulated activities, safeguard assets and notify affected third parties.

other

Aug 5, 2019

SVS was placed into Special Administration.

publication

Apr 25, 2024

FCA Decision Notice recorded that the Authority had decided to impose a £84,600 penalty before the matter was resolved and the reference withdrawn.

publication

Aug 17, 2026

FCA Final Notice issued, imposing a £56,400 financial penalty and prohibition order.

implementation

Sep 1, 2026

First monthly penalty instalment of £1,175 due under the Final Notice payment schedule.

Sources

AI-generated analysis is based on the following primary sources. Always verify against the official publication.

Related Evidence

Verified source support for this analysis

The evidence agent checks whether the drafted finding is supported by official publications and relevant public source material.

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