The latest action from the FCA for you;
The Financial Conduct Authority has banned Demetrios Hadjigeorgiou from working in senior management positions in financial services and fined him £56,400.
Mr Hadjigeorgiou was the former director and chief executive officer (CEO) of SVS Securities Plc (SVS), a discretionary fund manager.
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.
Therese Chambers, joint executive director of enforcement and market oversight, said:
‘Building up a pension for retirement is one of the most important investments you can make. Mr Hadjigeorgiou put people’s savings at risk and his actions have left people worse off in retirement.
Where senior leaders fail to put customer interests first, we will act.’
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