Collapsed Stockbroker Charged 20% In Fees, FCA Says
Law360, London (August 9, 2019, 1:51 PM BST) -- An investment manager that collapsed this week charged its customers fees amounting to more than 20% of their investments, the Financial Conduct Authority has revealed, as it blocked the company from carrying out regulated activities because it breached rules on due diligence and conflicts of interest.
Retail and institutional investors in SVS Securities were hit with fees, commission and other charges that sometimes reached a fifth or more of the money they paid in, the City watchdog said. SVS also offered portfolios to its clients that were filled with illiquid and high-risk bonds, the FCA said in a supervisory notice.
The regulator said...
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