UK Asset Manager H2O AM to Pay $274 Million (€250 Million) to Investors for Due Diligence Failure on Investments Relating to Tennor Group of Companies Owned or Introduced by Lars Windhorst, Investments Were High Risk & Hard to Sell, H2O AM Had Received But Not Declared Use of Superyacht & Private Jet by Employees, Provided False & Misleading Information to Regulator, H2O AM to Waive Rights to Fees & Investments of €320 Million & to Stop Operating Regulated Business in UK
16th August 2024 | Hong Kong
Following UK Financial Conduct Authority (FCA) investigation, UK asset manager H2O AM will pay $274 million (€250 million) to investors for due diligence failure on investments relating to Tennor Group of companies owned or introduced by Lars Windhorst. The investments were high risk & hard to sell. H2O AM had also received but not declared use of superyacht & private jet by employees, and provided false & misleading information to regulator. H2O AM agreed to waive rights to fees & investments of €320 million, and to stop operating regulated business in the UK. UK FCA (7/8/24): “Asset manager H2O AM LLP (H2O) will pay €250 million to investors unable to access their funds since 2020, following an investigation by the FCA. 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 other companies he introduced. The investments were high risk and hard to sell. The FCA also found that H2O did not have adequate policies or procedures or exercise due skill and care in managing potential conflicts of interest. The FCA identified over 50 instances where hospitality had been received by H2O employees but was not properly declared, including the use of a superyacht and private jet. H2O also provided false and misleading statements and documentation to the regulator, such as fabricated records and minutes of meetings. The FCA would have imposed a substantial fine on H2O for its serious breaches. However, the FCA has agreed the firm will make €250 million available to all those whose investments remain trapped. A significant part of this sum has been made available by way of voluntary contribution from the H2O Group. H2O has waived its rights to fees and investments totalling €320 million and will apply to cancel its UK authorisation by the end of the year.” Steve Smart, joint Executive Director of Enforcement and Market Oversight: “H2O’s job was to manage its funds properly and protect investors. It failed to do this and, to make matters worse, it repeatedly provided misleading information to the FCA.”
“ UK Asset Manager H2O AM to Pay $274 Million (€250 Million) to Investors for Due Diligence Failure on Investments Relating to Tennor Group of Companies Owned or Introduced by Lars Windhorst, Investments Were High Risk & Hard to Sell, H2O AM Had Received But Not Declared Use of Superyacht & Private Jet by Employees, Provided False & Misleading Information to Regulator, H2O AM to Waive Rights to Fees & Investments of €320 Million & to Stop Operating Regulated Business in UK “
UK Asset Manager H2O AM to Pay $274 Million (€250 Million) to Investors for Due Diligence Failure on Investments Relating to Tennor Group of Companies Owned or Introduced by Lars Windhorst, Investments Were High Risk & Hard to Sell, H2O AM Had Received But Not Declared Use of Superyacht & Private Jet by Employees, Provided False & Misleading Information to Regulator, H2O AM to Waive Rights to Fees & Investments of €320 Million & to Stop Operating Regulated Business in UK
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