Wealth firm collapses after UK watchdog's intervention

Pedro Gonçalves
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Wealth firm collapses after UK watchdog's intervention

Wealth management firm SVS Securities has collapsed into administration and will face a regulatory investigation amid "serious concerns" about its business.

The intervention followed "urgent" supervisory work by the Financial Conduct Authority after it received a tip-off about the assets in which SVS was investing the money of its clients, with the watchdog consequently instructing the wealth manager to cease all regulated activities.

"Acting on intelligence received about the assets in which SVS invested its clients' money, we conducted urgent supervisory work and identified serious concerns about the way in which the business was operating," a note on the regulator's website said.

Acting on intelligence received about the assets in which SVS invested its clients’ money, we conducted urgent supervisory work and identified serious concerns about the way in which the business was operating"

The FCA also stopped SVS, which is still authorised by the regulator, from disposing of its own or its clients' assets and an investigation is ongoing.

Following solvency advice the directors of SVS decided to place the company into special administration, the FCA said. 

Administrators at Leonard Curtis have been appointed to take control of the City-based broker and are exploring options. "The joint special administrators are currently considering the options for the business going forward, including a sales process of the whole or part of the business," the FCA says. "They will be speaking with interested parties about this."

 

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