SVS Securities fail to return £278m to clients
SVS Securities, now known as a ‘repeated serious breacher’ invested their clients pension pots into high-risk companies in return for disguised payments.
After the FCA (Financial Conduct Authority) reviewed the company after its closure. It was confirmed that clients would face significant monetary losses, due to the integrity of particular SVS directors; whom purchased bonds using clients funds for the business portfolio.
SVS Securities managed over £60 million in discretionary assets, 90% of which were received via pension transfers. These transfers were performed without a review of their clients suitability.
It was revealed that over £4 million was transferred by SVS to loan to a company that after review, had no means to ever be able to pay back such high sums of client money.
Basic due diligence and lack of data resulted in repeated high risk investments, which subsequently failed or had no means to be able to fulfil the prospects intended.
SVS failed to inform clients on the nature of their investment progressions with links between senior management and a number of bond issuers.
SVS was closed by the regulator, due to failing many compliance surrounding commission pay. A total of over £200 million cash and assets, remained held by the firm until it was transferred to a broker of June 2020 (ITI Capital).
In August 2020, it was reported that clients of SVS Security remained ‘locked out’ of their assets, after a number of weeks had passed since they were advised by their new stockbroker that they would be able to access their funds immediately.
Owners of such assets, were told that the reclaim deadline was 24th July 2020; however it came to light that any correspondence with the firm was non-existent; which meant that reclaiming was unavailable and contact with ITI was non-existent.
The lack of client contact led to a flurry of complaints, with the FCA (Financial Conduct Authority) becoming aware of the issue, and monitoring it closely.
ITI, announced that the ‘technical’ issue for clients to reclaim their cash and gain access to their portal was rectified and was a result of ‘teething problems‘ and ‘delays’ surround Covid’19 related means.
Clients that are currently seeking compensation for such monetary losses due to the high risk investment SVS made without their consent, or review of risk and suitability, can contact our team today.
We will perform a full review of the pension transfer and the monetary losses incurred to aim to claim back the losses you are owed.
We understand that a pension investment is performed to better ones future. We empathize with the current turn of events and wish for you to entrust our team, to seek the best avenues to obtain what is rightfully yours.