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FCA: Final Notice/Decision Notices: Kulvir Virk/ David Stephen/Demetrios Hadjigeorgiou

24 Jun 2024 (UPDATED: 13 Mar 2026) United Kingdom 1 min read

FCA has decided to ban and fine three individuals at SVS Securities Plc, a discretionary fund manager.  Kulvir Virk, the former CEO and majority shareholder, recklessly caused the firm to use a complex business model intended to maximise the flow of customer funds into high-risk illiquid bonds operated by directors of the firm and a close business associate of the individual.  The model involved inducements to SVS and unauthorised introducers with undisclosed commissions of up to 12% of the customers’ investments –the bonds subsequently defaulted and customers are unlikely to receive more than a fraction of their investment back.  Kulvir Virk has been fined £215,000 and issued with a prohibition order.  FCA alleges that David Stephen, Head of Compliance, failed to fulfil his responsibilities to ensure the firm was following FCA rules, and that Demetrios Hadjigeorgiou, the firm’s former FD then CEO, failed to fulfil his responsibilities to manage conflicts of interest and ensure proper due diligence was carried out.  FCA has published Decision Notices against them, which prohibit and fine them (£52,100 and £84,600 respectively).  Both individuals have referred their Decision Notices to the Upper Tribunal.


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