These fines aim to condemn three players for a violation of the rules intended to protect the interests of investors.
More than two years after the freezing of several H2O funds in which tens of thousands of French savers are still trapped, the time has come for sanctions. On Friday, the college of the Autorité des marchés financiers (AMF) demanded a fine of 75 million euros against H2O for violation of the rules intended to protect the interests of investors. For the first time in its history, the College of the Constable of the Stock Exchange has requested the maximum sanction against a manager: Bruno Crastes, boss of H2O, risks a fine of 15 million euros, as well as a ban on occupying executive and fund manager positions in France and in the European Union for ten years. A fine of 3 million euros was finally requested for the director of investments still in office, Vincent Chailley. In total, the proposed sanctions amount to 93 million euros. This is the highest amount ever required by the AMF against a company.
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The representative of the college of the financial policeman insisted on the “unprecedented gravity” shortcomings alleged against the former star company of the City and its leaders “in the field of asset management, its purpose, scope and consequences”. The defense characterized the requisitions as “disproportionate”.
The case dates back to 2019. At the time, H2O was rocked by requests for massive redemptions (6.2 billion euros) following an article by the FinancialTimes questioning the liquidity of some of its funds. Then, in August 2020, under pressure from the AMF, it had to suspend eight of its funds. A rare decision motivated by the fact that a growing share of the assets was illiquid, very difficult to value and linked to the controversial German businessman Lars Windhorst. H2O, in which Natixis still owns 23%, faces other penalties. The company is being sued by the British Stock Market Constable (FCA). And a civil trial is planned for 2023 following an approach by the Collectif Porteurs H2O association, which brings together more than 1,600 professional and private investors.
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