FCA Fines and Bans H2O Deputy CEO Over Misleading Conduct in Probe into High-Risk Investments

The UK’s Financial Conduct Authority (FCA) has imposed a £1,049,500 fine on Jean-Noel Alba, former Deputy Chief Executive Officer of asset manager H2O AM LLP, and banned him from working in financial services. The decision follows a FCA probe that found Alba had misled the regulator and lacked the integrity required for senior leadership roles.

From April 2015 to November 2019, H2O failed to conduct proper due diligence on high-risk investments tied to the Tennor Group of companies, owned by Lars Windhorst, or companies he introduced. This left investor investments trapped. In a 2024 settlement, H2O agreed to compensate affected investors with €250 million.

During the FCA’s investigation, Alba, who served as H2O’s primary contact with the FCA, provided false and misleading statements and documentation, including fabricated committee meeting minutes and investment research that was created years after the investments had been made.

Steve Smart, joint executive director of enforcement and market oversight at the FCA, stated: “This ban and substantial fine should serve as a warning to others that if you mislead the FCA, you will face the consequences.”

The enforcement action highlights the FCA’s stance on accountability and integrity within the financial sector. Recently, the regulator has also imposed several penalties targeting failures in financial crime controls, including a £42 million fine levied against Barclays Bank UK PLC and Barclays Bank PLC.