The FCA has at the moment banned and fined James Lewis, the previous CEO of Metropolis of London wealth supervisor and funding dealer Shard Capital Companions.
Mr Lewis has been fined £120,300 following two separate cases of offering incorrect details about shoppers’ money purportedly held by Shard.
The FCA mentioned that Mr Lewis’ misconduct put the market and traders in danger.
Between June 2015 and Might 2017, Mr Lewis advised auditors that Shard held lots of of thousands and thousands in money for a selected consumer. Nevertheless these sums have been money owed owed by one other consumer in the identical group.
In a 108 web page Ultimate Discover, the regulator mentioned that as well as, between June and July 2021 Mr Lewis offered deceptive info to an additional consumer purporting that Shard held substantial sums on its behalf. Nevertheless, that consumer’s complete money steadiness had beforehand been transferred out of its account.
The cash was invested in a number of giant funding bonds for shoppers through linked firms.
In accordance with the FCA in every occasion, Mr Lewis knew the knowledge he offered could be used to supply the shoppers’ annual accounts. These accounts have been misstated because of this, the regulator mentioned.
Shard supplies funding administration companies for intermediaries, institutional traders and excessive web price people in addition to retail shoppers, based on the corporate’s web site.
Mr Lewis has not held a senior administration perform at Shard since 31 January 2022 and the agency continues to function.
Steve Sensible, joint govt director of enforcement and market oversight, mentioned: “Mr Lewis fell woefully wanting the excessive requirements of ability, care and integrity we anticipate of all those that lead monetary companies.
“Buyers depend upon correct info, and Mr Lewis’ actions put traders at important threat of losses. It’s proper that he received’t be allowed to work in regulated monetary companies once more.”
Because the FCA was contemplating the primary of the suspected regulatory breaches, Shard turned conscious of the second and notified the FCA of the difficulty in September 2023. Subsequently, Mr Lewis additionally reported his conduct to the FCA.
Mr Lewis agreed to settle the matter and certified for a 30% tremendous low cost. With out the low cost the monetary penalty he confronted would have been £171,900.