The former boss and founder of fixed-income brokerage Shard Capital Partners has been fined more than £120,000 and banned by the Financial Conduct Authority for misrepresenting client cash.
According to the FCA, James Lewis put investors at risk and has now been fined following two separate instances of providing incorrect information about clients’ cash purportedly held by the firm.
The company was set up by Lewis in 2010 but he has not been involved in day to day management since January 2022.
The FCA found between June 2015 and May 2017, Lewis told auditors Shard held hundreds of millions in cash for a particular client, but these sums were debts owed by another client in the same group.
Also, between June and July 2021, Lewis provided misleading information to a further client claiming 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, Lewis knew the information he provided would be used to produce the clients’ annual accounts. Those accounts were misstated as a result.
While the FCA was considering the first of the incidents, Shard became aware of the second and notified the FCA of the issue in September 2023.
Lewis subsequently reported his own conduct to the FCA.
Steve Smart, joint executive director of enforcement and market oversight, 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."
Lewis was fined a total of £120,300 after agreeing to settle the matter. This meant he qualified for a 30 per cent discount, without which he would have faced a £171,900 penalty.
tara.o'connor@ft.com
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