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FCA bans director for misleading investors over Keydata SLS bonds

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.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Anyone know if the EEA SLS fund is open as there is a note on the cisx web site saying all continuing cells are suspended?

  2. So eight years later the regulator finally decides that an individual who was in the know was telling porkies. At the same time the muggers working for the FSCS (oops I should say lawyers) have decided that advisers should have known all about this and therefore are being pursued for the money that the FSCS has paid out.

    This seems to be a gold plated example of being clever after the event. Isn’t about time that the FSCS fessed up and just abandoned this spurious case? Yes they will have lost face, but who will actually notice that? They are not exactly held in the highest of esteem to start with.

  3. John, the directors of EEA are saying the fund is open but existing investors remain subject to a freeze on redemptions.

    See investoraction.wordpress.com if you are an existing investor affected by the suspension

  4. John S

    Where did you see this comment on CISX ? The EEA Fund came out of suspension on 1st January 2014, but as Peter L says thare is a lockout period on redemptions. The Group that Peter mentioned is proposing to take action against the UK Government for the “misconduct” of the FSA back in 2011 re SLS in general. There is an EEA Investor Group taking action agaist EEA iteself – see http://www.EEAInvestors.com or email EEAInvestors@gmail.com.

    John D

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