British broker/dealer SVS Securities PLC has entered into administration after serious concerns about its operations were revealed, according to the U.K. Financial Conduct Authority.
The FCA's findings came after it received information about assets in which SVS invested its clients' funds. Following the FCA's decision to bar SVS from conducting regulated activities and disposing of its own or its clients' assets, the company's directors considered its viability and solvency and resolved to place the company into special administration, the regulator said.
Special administrators from insolvency firm Leonard Curtis appointed to SVS are considering future options for the company, including a partial or full sale of the business.
The FCA said payments firm Ipagoo LLP has also entered into administration after it barred the company from carrying out regulatory activities and disposing assets or funds it holds in relation to e-money services.
The move came after the FCA was made aware of concerns that Ipagoo failed to properly segregate customers' funds, the Financial Times reported.
FRP Advisory LLP, appointed as administrator to Ipagoo, said it plans to transfer the company's business to another regulated firm, according to the Aug. 2 report.
Jason Baker, an FRP partner, said Ipagoo also had a lack of working capital that pushed its directors to enter the business into administration.
Clients' funds safeguarded by Ipagoo to protect against a disorderly failure of the company are not protected by the U.K. Financial Services Compensation Scheme, the FCA noted.