FCA slaps ban on ex-CIB Partners chief
The Financial Conduct Authority (FCA) has banned Arnold Eber, the former chief executive officer of the now-dissolved CIB Partners, from performing any function that relates to any regulated activity in the financial services industry.
The regulator found that Eber “lacked integrity”, giving the impression in his conduct that certain bonds were soundly backed assets, when he actually had “grave concerns” about their viability.
He also failed to tell the FCA about his concerns.
Eber was chief and chair of CIB from 2007 to 2010. The company ceased to exist in 2012 when it was dissolved and struck off the UK Register of Companies.
The bonds in question – issued by SLS Capital, a Luxembourg-based special purpose vehicle for which CIB was an adviser between 2007 and 2009, underpinned investments which were sold to UK investors.
From the FCA:
In September 2007, Mr Eber became aware that without continuous cash injections, there was a high risk that the SLS portfolio would suffer from severe liquidity issues within a year. He was also aware by August 2008, that SLS had sold off most of the asset portfolio that underpinned the SLS bonds.
Despite this knowledge, Mr Eber issued a number of false and misleading documents about the strength of the SLS portfolio. He also failed to disclose to the then FSA his knowledge of the extent of the problems with the SLS portfolio or his knowledge of the sale of the underlying SLS assets.