Notably, the French regulator did fine H20 €75mn and sanctioned senior individuals, which proceedings are subject to an appeal process.
It is true that in serious cases of misconduct, the public censure option is unusual, with most previous examples relating to companies in liquidation or administration, where monies are owed to creditors.
But conflicts of interest have seen the FCA impose significant penalties – for example, around £17.6mn on Aviva Investors Global Services in 2015, and around £9.1mn in respect of GAM International Management in 2022.
In fact, the FCA’s detailed findings in respect of H2O underscore that, even though a fine was not imposed in this case, the regulator expects asset managers to be scrupulous in identifying and managing conflicts of interest and their risks.
Abdulali Jiwaji is a financial services litigation partner at Signature Litigation LLP; he is also a member of the main committee of the London Solicitors Litigation Association
