| Link(s): | H2O Deputy CEO fined £1m and banned from financial services for deliberately misleading FCA | FCA Final Notice 2025: Jean-Noël Yves Alba |
Context
The FCA has announced that the former Deputy CEO of asset manager H2O AM LLP (H2O), Jean-Noel Alba, has been fined just over £1m and banned from the financial services industry. The fine would have been in the region of £1.5m, but Mr Alba agreed to resolve this matter and qualified for a 30% (Stage 1) discount under the FCA’s executive settlement procedures. The investigation found that Mr Alba lacked integrity because he misled the FCA.
Key points to note and next actions
- Between April 2015 and November 2019, H2O failed to carry out proper due diligence on investments relating to the Tennor Group of companies owned by Lars Windhorst, or companies he introduced. The investments were high risk and hard to sell, leaving investor money trapped. In 2024, the FCA agreed that H2O would pay those investors €250 million.
- During the FCA’s investigation into H2O, Mr Alba provided false and misleading statements and documentation to the regulator. Mr Alba was the principal point of contact with the FCA during its investigation.
- Mr Alba asked junior colleagues to create minutes, including records and minutes of committees, where no formal meetings had taken place. Mr Alba also provided due diligence materials, such as investment research, to the FCA that had been created years after the investments had been made, when he had claimed they were produced at the time.
- Senior Managers at firms must be aware of the importance of being open and honest with the FCA, particular