The Financial Conduct Authority (FCA) has banned Arnold Eber, the former Chief Executive Officer of CIB Partners Limited (CIB), from performing any function in relation to any regulated activity in the financial services industry
The FCA has found that Mr Eber lacked integrity as his conduct gave the misleading impression that SLS bonds were soundly backed assets when he had grave concerns about their viability. He also failed to inform the FCA of these concerns.
Mr Eber was the CEO and director of CIB from 5 September 2007 until 15 September 2010. CIB ceased to exist on 10 April 2012 when it was dissolved and struck off the UK Register of Companies.
Between September 2007 and mid-2009, CIB was engaged as an adviser to SLS Capital S.A. (SLS), a Luxembourg-based special purpose vehicle. SLS issued bonds underpinning investments which were sold to investors in the UK.
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.
Notes for editors
- The Final Notice for Arnold Eber[1].
- The SLS bonds and asset portfolio, which are the subject of this Final Notice, underpinned certain products issued by Keydata Investment Services Limited (in administration) (Keydata). Keydata was placed into administration by the Court on 8 June 2009 and Keydata, senior management at Keydata remain under investigation by the FCA. We cannot provide further information about these investigations because of the confidentiality restrictions on disclosure of information. Keydata FAQs can be found on the FCA’s website here: Keydata Frequently asked questions
- On the 1 April 2013 the Financial Conduct Authority (FCA) became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
- Find out more information about the FCA.