H20 AM's Ex-Senior Officer Received a Ban from the Financial Conduct Authority (FCA)
The UK's Financial Conduct Authority (FCA) has taken action against Jean-Noel Alba, the former deputy CEO of H2O AM LLP. Alba was fined £1,049,500 and banned from the financial services industry for misleading the regulator during an investigation into H2O's due diligence practices.
The FCA found that Alba had provided false and misleading statements and documents, including asking junior colleagues to fabricate committee meeting minutes where no meetings had taken place and submitting investment research materials that were actually created years after the investments were made but presented as if produced contemporaneously.
This misconduct occurred during the FCA’s probe into H2O’s inadequate due diligence on high-risk, illiquid investments related to the Tennor Group and entrepreneur Lars Windhorst between 2015 and 2019. These investments trapped investor money and led to H2O agreeing in 2024 to compensate affected investors €250 million.
Alba’s conduct breached FCA principles and rules, leading the regulator to conclude he lacked integrity and had no place in the industry. He settled the FCA’s allegations and received a 30% discount on the financial penalty.
In addition to Alba, the FCA has also banned Leigh Mackey from working in financial services and fined him £1,102,879 for misleading the FCA and misusing funds due to insurers. The specific circumstances of Mackey's misconduct are not detailed in the provided paragraphs.
Meanwhile, Ari Harris was convicted of inflicting grievous bodily harm without intent in July 2020 and has been banned from working in financial services by the FCA. The specific crime committed by Harris is not specified.
The FCA's Steve Smart, joint executive director of enforcement and market oversight, stated that senior leaders in financial services need to act with integrity. He warned that if you mislead the FCA, you will face the consequences.
The paragraphs do not provide information about the clients in the construction sector or the specific insurance brokers or financial advisers involved in the cases of Jonathan Frensham and Ari Harris.
[1] Financial Conduct Authority - Press release: H2O AM LLP and Jean-Noel Alba fined for misleading FCA [2] Financial Conduct Authority - Press release: Leigh Mackey banned from financial services and fined £1.1 million [3] Financial Conduct Authority - Press release: Ari Harris banned from financial services [4] The Telegraph - H2O AM fined £5.7m over unsuitable investments [5] Citywire - H2O AM's Jean-Noel Alba fined £1.05m by FCA over Tennor Group investments
- Despite the controversy surrounding H2O AM LLP, the FCA has also taken action against Leigh Mackey, banning him from the financial services industry and fining him £1,102,879 for misleading the FCA and misusing funds.
- In a separate case, Ari Harris, who was convicted of inflicting grievous bodily harm without intent, has been banned from working in financial services by the FCA, a reminder that senior leaders in financial services need to act with integrity.
- General-news reports indicate that the FCA has been vigilant in enforcing regulation in the finance sector, even in cases outside of specific investigations into businesses like H2O AM LLP, such as in the cases of Jonathan Frensham and crime-and-justice offenders like Harris.
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