The Autorité des Marchés Financiers stated the agency could be fined €75m, whereas co-founder Bruno Crastes and chief funding officer Vincent Chailley might want to pay €15m and €3m euros respectively, including the choice might nonetheless be appealed.
H2O first got here beneath scrutiny from the market and regulatory our bodies in 2019 over its investments in illiquid bonds issued by a number of corporations associated to Windhorst, who owns Tennor Holdings.
In its ruling, the AMF stated these fines could be adopted by disciplinary sanctions, citing a number of failings within the acquisition and administration of the Tennor belongings.
This comes after the agency stated on Tuesday (3 January) that it’ll start the primary reimbursement of its side-pocketed funds, paying out €250m to buyers.
H2O to start €250m reimbursement of side-pocketed funds
In a press release, the agency stated it could start repaying unitholders among the €1.6bn it owes buyers “within the subsequent few days”.
In August 2020, seven of the asset supervisor’s funds have been suspended, with its illiquid holdings ‘side-pocketed’, after uncertainties round valuations and illiquid belongings led to buyers withdrawing billions.
This was adopted by a press release in July 2022, the place H2O AM laid out its plans to liquidate the suspended funds, in addition to retrieve cash from Windhorst’s Tennor Holding “throughout the 12 months”.
The UK’s FCA can be investigating H2O, whereas a gaggle of greater than 3,000 shoppers referred to as Collectif Porteurs H2O is suing the agency in France. Final 12 months, the group was granted a court docket order appointing an knowledgeable to assessment H2O trades linked to Windhorst.
Funding Week has reached out to H2O Asset Administration for remark.