SVS Securities was a UK based stockbroker and investment firm, founded in 2003. The company offered a range of financial services, including share dealing, CFD trading, Forex trading, spread betting and more. SVS Securities was regulated by Financial Conduct Authority (DCA) and was a member of the London Stock Exchange. The firm claimed to provide it’s clients with competitive pricing, cutting-edge trading platforms and excellent customer service.
However, in 2019, SVS Securities stopped trading due to “serious regulatory concerns.” Since then, the company has been under administration, and clients have been unable to access their funds.

What Went Wrong For SVS Securities?

 
2018 Investigation
SVS Securities were put into administration in November 2018 following an investigation by the FCA into the questionable conduct of the company. The FCA found that SVS Securities were promoting high-risk bonds to the retail investors, overvaluing illiquid assets and failing to carry out appropriate due diligence. 
On top of this, SVS Securities were also found to have questionable commission arrangements charging up to 1/5 of the investment value whilst also receiving up to 10% in commission from the bond issuers. 
 

Incentivised Investment Recommendations

More concerning still, some of the investments within the SVS model portfolio had the Directors of SVS Securities as Shareholders of the investment which essentially meant that the Directors were financially incentivised to recommend the investment as they received a commission from the client, as well as a commission from the bond issuer, and then also had an entitlement to a share in the profits of the investment in their capacity as a Shareholder. With this mind, it is not surprising that the FCA questioned how SVS Securities could be acting in their client’s best interest and made the decision to prohibit them from doing any new busness.  
 

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