SVS Securities: Implications For Investors
SVS Securities, a prominent stockbroker and wealth management firm, has been embroiled in a pension scandal that has affected numerous clients. In this article, we will delve into the details of SVS Securities, a Discretionary Fund Manager (DFM), and the surrounding pension scandal, its implications for investors, and the process of opening a mis-sold pension claim. If you have been a client of SVS or suspect that your pension has been mis-sold, it is crucial to understand your options and take action to protect your financial interests.
SVS Securities: A Specialist Stockbroker Committed to Building Client Investments:
SVS Securities is a specialist stockbroker renowned for providing access to various trading opportunities, including stocks, CFDs, IPOs, and corporate finance. The company positions itself as committed to helping clients build their investments through a range of services, such as advisory stockbroking, online share dealing, foreign exchange trading, and discretionary fund management.
The Placing of SVS Securities in Special Administration:
On 5 August 2019, SVS Securities plc (SVS) made the decision to place the firm in Special Administration, with Leonard Curtis Recovery Ltd appointed as the Special Administrator. The Financial Conduct Authority (FCA) had taken action against SVS, imposing restrictions on its regulated activities and asset disposals due to serious concerns about its business operations. Consequently, the directors sought solvency advice and resolved to place SVS into Special Administration.
Investment Provider and Mis-Sold Pension Claims:
Fiducia Wealth Solutions, in collaboration with SVS, served as an investment provider. The intricate web of relationships involved in the SVS pension scandal necessitates careful consideration of potential claims. The Financial Services Compensation Scheme (FSCS) plays a crucial role in assessing the eligibility of customers for compensation, which requires satisfying specific criteria.
Opening a Mis-Sold Pension Claim:
To initiate a claim against SVS or any failed firm, we look for the following conditions:
- Customers cannot claim against any connected firms, including FCA authorised advisors.
- If a claim has been made against a connected firm, it must be completed, which also includes FCA authorised advisors.
Considering the complexity of SVS's model portfolios and the inclusion of corporate bonds with nil or significantly reduced values, it is crucial to follow the proper procedure. If an FCA authorised advisor who is still trading recommended investing in discretionary managed funds with SVS, it is essential to lodge a complaint with the advisor first. If the complaint is rejected, the next step involves filing a complaint. For complaints against non-trading FCA authorised advisors, a claim is submitted to the FSCS. It is essential to understand that FSCS considers different factors when calculating losses on pension advice compared to a claim against a discretionary fund manager like SVS.
Compensation and Updates:
The FSCS has been actively assisting former SVS customers, with over 90% having received compensation. As of February 2022, the total compensation paid out by the FSCS to former clients of SVS Securities amounted to £31.6 million. Notably, a significant portion of this compensation relates to the return of funds during the transfer to a new broker.
Ongoing Investigations and Collaboration:
As of January 19, 2023, investigations into SVS's stockbroking activities and SVS SIPP (Self-Invested Personal Pension) by the FSCS are still underway. These investigations aim to determine whether SVS's regulated business, investments, and customer claims meet the requirements for compensation under the FSCS rules, established by the Financial Conduct Authority.
Involvement of Better Retirement Group Ltd and Fiducia Wealth Solutions:
Better Retirement Group Ltd allegedly provided "specialist DB transfer services" to Fiducia Wealth Solutions, which is no longer trading. Fiducia was reportedly connected to the Steelworker pension controversy and the collapse of DM SVS Securities.
The SVS Securities pension scandal has had far-reaching consequences for investors, requiring careful consideration and action. By understanding the intricacies of the scandal and the process of opening a mis-sold pension claim, affected individuals can navigate the complexities and seek the compensation they may be entitled to. Stay informed, review your options, and take the necessary steps to protect your financial interests.
If you believe you may have been affected by the pension scandal surrounding SVS Securities and are considering opening a mis-sold pension claim, it is crucial to seek professional assistance. At CP Financials Claims, we specialise in handling complex financial claims and have extensive experience in dealing with cases involving mis-sold pensions. Our team of experts can provide you with the guidance and support needed to navigate through the claims process, ensuring your interests are protected.
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