The FCA has as we speak 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 situations of offering incorrect details about shoppers’ money purportedly held by Shard.
The FCA stated that Mr Lewis’ misconduct put the market and buyers in danger.
Between June 2015 and Could 2017, Mr Lewis informed auditors that Shard held lots of of thousands and thousands in money for a specific consumer. Nonetheless these sums have been money owed owed by one other consumer in the identical group.
In a 108 web page Ultimate Discover, the regulator stated 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. Nonetheless, that consumer’s complete money steadiness had beforehand been transferred out of its account.
The cash was invested in a number of massive funding bonds for shoppers by way of linked firms.
Based on the FCA in every occasion, Mr Lewis knew the data he offered could be used to provide the shoppers’ annual accounts. These accounts have been misstated consequently, the regulator stated.
Shard supplies funding administration providers for intermediaries, institutional buyers and excessive internet price people in addition to retail shoppers, in line with the corporate’s web site.
Mr Lewis has not held a senior administration operate at Shard since 31 January 2022 and the agency continues to function.
Steve Sensible, joint government director of enforcement and market oversight, stated: “Mr Lewis fell woefully wanting the excessive requirements of ability, care and integrity we count on of all those that lead monetary corporations.
“Traders depend upon correct info, and Mr Lewis’ actions put buyers at vital danger of losses. It’s proper that he received’t be allowed to work in regulated monetary providers once more.”
Because the FCA was contemplating the primary of the suspected regulatory breaches, Shard grew to become conscious of the second and notified the FCA of the problem 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% nice low cost. With out the low cost the monetary penalty he confronted would have been £171,900.
