H2O AM settles with FCA, agrees to compensate fund holders, waive fees, and exit UK.

From Morningstar: 2024-08-07 12:02:00

H2O AM settles with the FCA, ending investigation into its ties with Tennor Holdings, agreeing to offer €250 million to all fund holders from Q4 2024. The company also waives €320 million in fees, closes UK operations by year-end in response to the regulator’s findings of misconduct and potential conflicts of interest.

FCA reveals H2O AM’s lack of due diligence on investments related to Tennor group companies, risky investments, failures in policies and procedures, and misleading statements. A substantial fine was avoided through the settlement, but it marks a severe punishment for the asset management firm.

Legal action by French investors against H2O AM follows the FCA’s revelations. Sanctioned earlier by the AMF, the management company faces further scrutiny for its investments and relationships. The fallout may hasten Natixis’ exit from H2O’s capital, affecting the firm’s future in the UK and its ongoing legal battles in France.



Read more at Morningstar: H2O AM to Exit UK After FCA Deal