UK FCA Imposes £120k Fine and Ban on ex-Shard CEO James Lewis

• The UK’s Financial Conduct Authority (FCA) has banned and fined ex-Shard Capital Partner CEO James Lewis for providing misleading information about clients’ cash.
• Lewis has been fined £120,300 and is prohibited from working in regulated financial services again.
• The FCA claims that Lewis knowingly provided false information that was used to produce clients’ annual accounts, thus putting investors at risk.

James Lewis, the former CEO of Shard Capital Partner, has been fined £120,300 and banned by the UK’s Financial Conduct Authority (FCA) for providing misleading information about clients’ cash, thereby jeopardising the market and investors.

“He won’t be allowed to work in regulated financial services again”

According to the FCA, between June 2015 and May 2017, Lewis informed auditors that Shard held hundreds of millions in cash for a specific client. However, it was later discovered that these amounts were debts owed by another client within the same group. Furthermore, between June and July 2021, Lewis provided another client with false information, claiming that Shard held substantial sums on its behalf. In reality, the client’s entire cash balance had previously been transferred out of its account.

Lewis’s Misconduct Reported to the FCA

The FCA asserts that Lewis was aware that the information he provided would be used to produce the clients’ annual accounts, which is why he misrepresented the facts. As the FCA was investigating the first of these instances, Shard became aware of the second and reported the issue to the regulator in September 2023. Lewis also admitted his misconduct to the FCA. Steve Smart, joint Executive Director of Enforcement and Market Oversight, commented: “Mr Lewis fell woefully short of the high standards of skill, care, and integrity we expect of all those who lead financial firms. Investors depend on accurate information, and Mr Lewis’ actions put investors at significant risk of losses. It is right that he won’t be allowed to work in regulated financial services again.”

Conclusion

This case underscores the FCA’s commitment to maintaining the integrity of the financial market and protecting investors. The hefty fine and ban imposed on Lewis serve as a stern reminder to financial professionals about the severe consequences of providing misleading information and failing to uphold the standards of skill, care, and integrity expected in the industry.