The FCA has banned Arnold Eber from working in financial services after he misled investors about the strength of bonds which backed Keydata products.
Eber is the former chief executive and director of CIB Partners, which acted as an adviser to SLS Capital. SLS Capital was a Luxembourg-based investment vehicle which issued the underlying bonds behind Keydata.
Eber acted as chief executive and director of CIB Partners between September 2007 and September 2010.
The FCA says in September 2007, 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, Eber issued a number of false and misleading documents about the strength of the SLS portfolio. He also failed to inform the FSA of his concerns.
CIB Partners was dissolved in April 2012.
Around 30,000 investors lost £450m when Keydata collapsed in June 2009. Many have claimed from the Financial Services Compensation Scheme, which has separately sought to recoup money from advisers.