Regulator claims another scalp in Keydata fallout

Laura Miller
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The Financial Conduct Authority (FCA) has banned a former adviser to SLS Capital - the company whose bonds underpinned the failed Keydata investments - for giving the misleading impression that the SLS bonds were soundly backed assets.

Former chief executive of CIB Partners Arnold Eber was engaged as an adviser to Luxembourg-based special purpose vehicle SLS Capital between September 2007 and mid-2009. From September 2007, the FCA found that Eber had become aware that without continuous cash injections there was a high risk that the SLS portfolio - a collection of second hand life policies on which premiums needed to be paid for by SLS until maturity - would suffer from severe liquidity problems within a year. As Eber expressed it, SLS was "bankrupt" because of the amount of interest outstanding to bondholders versu...

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