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French watchdog fines H2O Asset Management, executives over Tennor investments
Global Banking & Finance Review®
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(Reuters) – France’s financial markets watchdog AMF said on Tuesday it had fined H2O Asset Management and two of its managers close to 100 million euros ($105 million) in total for several breaches linked to
(Reuters) – France’s financial markets watchdog AMF said on Tuesday it had fined H2O Asset Management and two of its managers close to 100 million euros ($105 million) in total for several breaches linked to investments in illiquid Tennor Holding assets.
H2O in 2019 became the subject of market and regulatory concern over its investments in illiquid bonds issued by several companies related to German entrepreneur Lars Windhorst, who owns Tennor.
The London-based investment firm was fined 75 million euros, while the two managers need to pay 15 million and 3 million euros respectively, the AMF said, adding the decision could still be appealed.
H2O did not immediately reply to a Reuters request for comment by phone and email.
The AMF in its decision said the financial penalties would be accompanied by disciplinary sanctions, citing several failings related to the acquisition and management of the Tennor assets.
H2O in 2020 was urged by the watchdog to suspend some of its funds, as they were deemed insecure.
($1 = 0.9481 euros)
(Reporting by Juliette Portala, editing by Tassilo Hummel and Mark Potter)
Asset management is the systematic process of developing, operating, maintaining, and selling assets in a cost-effective manner. It involves managing investments on behalf of clients.
Financial markets are platforms where buyers and sellers engage in the trade of assets such as stocks, bonds, currencies, and derivatives. They facilitate the raising of capital and the transfer of risk.
A regulatory framework consists of the rules, regulations, and guidelines that govern the operations of financial institutions and markets. It ensures compliance and protects investors.
Investment portfolios are collections of financial assets such as stocks, bonds, and cash equivalents held by an investor. They are designed to achieve specific investment goals.
An appeal in a financial context refers to the process of challenging a regulatory decision or penalty in a higher authority or court, seeking to overturn or modify the original ruling.
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