FCA Issues Ban and £56,400 Fine to Former SVS Securities CEO Demetrios Hadjigeorgiou

The Financial Conduct Authority (FCA) has prohibited Demetrios Hadjigeorgiou, former CEO of SVS Securities Plc, from holding senior management roles in the UK financial services sector and imposed a fine of £56,400. The FCA's actions follow findings that Mr Hadjigeorgiou failed to manage SVS Securities appropriately and protect its customers’ interests, leading to customer losses including pension savings.

FCA Findings: Customer Protection and Due Diligence Failures

The FCA determined that Demetrios Hadjigeorgiou did not exercise adequate skill, care or diligence in his role as chief executive officer of SVS Securities Plc. The regulator cited breaches of Statement of Principle 6, as he failed to oversee the firm's activities with the required standards for customer protection.

Between 1 May 2018 and 7 August 2019, SVS Securities under Mr Hadjigeorgiou's leadership invested client funds—including pension monies—into high-risk financial products. Significant payments were received by SVS from the issuing entities of these products. During this period, decision-making failed to prioritise customer interests over commercial gain.

High-Risk Investments and Concealed Deductions

The FCA's investigation revealed two critical failures during Mr Hadjigeorgiou’s tenure:

• SVS Securities allocated customer money to high-risk assets, at times disregarding proper suitability checks for clients, specifically those investing retirement savings.
• A decision was made under his watch to reduce the value of customers’ bond investments by 10% upon sale, providing SVS with £359,800. Customers were not adequately informed of this deduction, resulting in a direct loss to their balances, in some cases impacting pension funds.

"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," stated Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA.

SVS Securities’ Administration and Regulatory Actions

SVS Securities Plc entered special administration on 5 August 2019 following regulatory scrutiny and was officially dissolved on 10 August 2023. Mr Hadjigeorgiou served as CEO during the key period under review. The FCA first issued a Decision Notice on 25 April 2024 outlining the breaches and proposed sanctions. After Mr Hadjigeorgiou agreed to settle and withdrew his referral to the Upper Tribunal, the FCA formalised the ban and financial penalty in its Final Notice.

The prohibition order was enforced under sections 66 and 56 of the Financial Services and Markets Act 2000. This action is part of broader FCA efforts to address misconduct in the treatment of pension funds, with recent enforcement also targeting other individuals connected to SVS Securities (see more in our regulation section).

Implications for Senior Managers in Financial Services

This case underscores the FCA’s expectation that senior leaders must prioritise customer interests over commercial benefit. Failing to do so—with evidence of deliberate risk-taking or obfuscation—will result in regulatory intervention, including bans from senior functions and substantial fines.

More details on SVS Securities’ administration and FCA enforcement practices are covered in industry news.

Regulatory Context and Next Steps

The FCA’s actions against Mr Hadjigeorgiou follow repeated warnings to discretionary fund managers and investment firms regarding their responsibilities towards vulnerable customers and pension fund savers. The regulator has signalled that leadership failures in this area will lead to individual accountability, not just organisational sanctions. Firms in the sector are advised to ensure transparent disclosures, robust suitability checks, and thorough oversight of investment decisions involving client assets.