Release Date: 22nd April 2024
To access the original FCA document, click here.
Summary
Mr James William Edward Lewis has been fined £120,300 by the Financial Conduct Authority (FCA) and prohibited from performing any function in relation to any regulated activity. This decision follows breaches of the FCA’s regulatory principles during his tenure as CEO and Managing Partner of Shard Capital Partners LLP.
Reasons for the FCA Fine:
- Breach of APER 2 (Due Skill, Care, and Diligence): Between June 2015 and May 2016, Mr Lewis provided misleading information to the auditors of Connected Company A, suggesting that it held substantial cash balances when, in fact, the cash was part of a netting arrangement and not held as stated. This failure to explain the netting arrangement and the actual cash position risked misleading the auditors.
- Breach of COCON 1 (Integrity): In June 2021, Mr Lewis provided false information to Connected Company C about its cash balances to avoid escalation by a senior manager. This information was used to prepare the company’s accounts, resulting in inaccurate financial statements for 2019, 2020, and 2021.
Key Takeaways for Other Firms:
- Ensure Transparency: Always provide clear and accurate information to auditors and stakeholders, especially regarding financial positions and arrangements.
- Maintain Integrity: Uphold the highest standards of integrity in all dealings, ensuring that information provided is truthful and not misleading.
- Effective Internal Controls: Implement robust internal controls to prevent unauthorised transfers and ensure that all transactions are properly authorised and documented.
- Regular Training and Awareness: Ensure that all employees, particularly those in senior management, are fully aware of their responsibilities and the importance of compliance with regulatory requirements.
- Prompt Correction of Errors: If errors are identified, address them immediately and transparently to avoid further regulatory and legal repercussions.
Conclusion
The FCA’s action against Mr James William Edward Lewis underscores the critical importance of integrity, transparency, and diligence in financial management and regulatory compliance. Firms must adhere to strict ethical standards and ensure accurate communication with auditors and stakeholders to maintain trust and avoid severe penalties.
