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FSA bans Cru co-founder
by Sarah Miloudi on Mar 07, 2013 at 13:03
The Financial Services Authority (FSA) has banned Cru Investment Management founder Stephen Danner.
Danner, formerly of SD Asset Management (SDAM) , has been banned for 'failing to act with integrity and behaving in a way which fell well below the standards required of him', the regulator said.
Danner was a director of SDAM, a small IFA firm based in Cardiff and was also one of the co-founders of Cru Investment Management, which marketed the CF Arch cru range of investment funds to IFAs and was closely involved with the establishment of the funds.
The Arch cru funds were suspended in March 2009 due to a lack of liquidity, and has been a scandal followed closely by investors for a number of years.
The FSA said Danner should not be approved for another role in the City, and pointed to an Upper Tribunal hearing last June in which an earlier judgement against him found his conduct lacking.
In its latest judgment of his conduct, the FSA said Damner's SDAM had allowed close to 400 of its clients to invest in Arch cru funds, collectively pouring £39 million into the vehicles.
Danner earned £55,000 from SDAM and £553,000 from Arch cru, and the FSA said he also failed to vet SDAM’s appointed representatives.
Tracey McDermott, the FSA’s director of enforcement and financial crime, said: 'He both failed to understand or act upon either his personal duty to his customers or his obligations as principal to a number of appointed representatives.
'Even when the seriousness of his shortcomings was plain to see, Danner failed to put the problems right.'
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