FCA bans and fines former investment firm CEO £120,300

Former CEO of Shard Capital Partners, James Lewis, has been fined £120,300 and banned by the FCA following two separate instances of providing incorrect information about clients’ cash.

The FCA found that between June 2015 and May 2017, Lewis told auditors that Shard held hundreds of millions in cash for a particular client. In fact, these sums were debts owed by another client in the same group.

In addition, between June and July 2021, he provided misleading information to a further client purporting that Shard held substantial sums on its behalf. However, that client’s entire cash balance had previously been transferred out of its account.

In each instance, the FCA says Lewis knew the information he provided would be used to produce the clients’ annual accounts and, as a result, those accounts were misstated.

Lewis agreed to settle the matter and qualified for a 30% reduction discount on the initial fine of £171,900.

Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: "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."

A spokesperson for Shard Capital commented: “We welcome the completion of the investigation into James Lewis, which we have been supporting throughout. As highlighted in the FCA’s final notice, Mr. Lewis has not held a senior management function at Shard Capital for over two years.”