Stephen is a Senior Managing Director in FTI’s Economic and Financial Consulting practice and based in London. He joined FTI on 1st June 2009. He graduated in Economics from the University of Bristol in 1973 and joined Arthur Andersen’s Financial Services practice in that year. He qualified as a Chartered Accountant in 1976 and became a partner in Andersen in 1986, where he rose to the position of Global Managing Partner of the firm’s Financial Services practice.
Experience
During a near 30 year career with the firm, Stephen worked exclusively with clients in the financial services sector covering almost all areas of the industry – retail, corporate and investment banking; fund management; conventional investment and hedge funds; commodity trading and futures broking; insurance broking; exchanges: and clearing and settlement agencies - both as an auditor and later as a consultant. He has extensive experience of dealing with risk management and internal control issues within the sector. He acted as engagement partner on the audits of several large fund management companies, notably Invesco, and on the audit of a major commodity trader, Philipp Brothers.
Since leaving Andersen in 2002, Stephen has had senior positions in litigation support and economic consulting, management consultancy and in insurance broking.
Stephen joined the board of Britannia Building Society as a non-executive director and chairman-designate of the audit committee in October 2008. On 1st August 2009, the merger between Britannia and Cooperative Financial Services Group was finalised and he joined the boards of
CFS and its various banking and insurance subsidiaries, as well as the group risk committee, the role of which was to provide oversight on the management of risk in all three businesses, and to oversee the asset allocation process, investment strategy and investment mandates in the life fund. In March 2010, he was appointed chairman of the Bank Transformation Programme committee of the Board. He stepped down from the board in June 2011.
In March 2012, he joined the board of Credit Suisse’s investment bank and its audit committee as a non-executive director.
Stephen is the independent director of an investment fund which invests in fine art. He is also a liveryman of the Worshipful Company of International Bankers.
PREVIOUS POSITIONS
LECG Limited – director in their London office, September 2007 – May 2009
BearingPoint Inc, Head of Financial Services Consulting Practice, April 2006 – 2007
Aon Corporation, CEO Sales & Business Development Europe, April 2004 – October 2005
Diamond Cluster International, Partner of Financial Services UK, December 2002 - April 2004
Arthur Andersen, various positions, latterly Head of Global Financial Services, 1973 – 2002
PROFESSIONAL EXPERIENCE
Stephen uses his financial services and board experience to support litigation involving many aspects of governance, reporting and management in the industry. He has recently led or participated in teams supporting litigation or contention involving:
- Expert testimony in the defence of a master hedge fund against a winding up petition brought by a group of investors
- Expert testimony in the defence of a CFD broker against a claim brought by clients of a failed intermediary
- Expert testimony in proceedings by two investment funds against the administrators and custodians of the funds resulting from major losses in those funds
- Expert testimony in proceedings brought against a wealth manager by clients alleging breach of mandate, mis-selling and misrepresentation
- Expert testimony in defence of a ceo of a large wealth management business in relation to action brought by the FSA and his appeal against a ruling by the RDC.
- Expert testimony in relation to a claim against an underwriter in relation to their due diligence on a large equity offering.
- Major disputes between two banks and the revenue authorities over what constituted lending in the normal course of business
- Investors in a failed UK bank and the UK Government over their compensation
- Expert testimony in proceedings between a company and its directors, and certain investors, over a proposed refinancing of the company
- The claims of noteholders in a diversified company with substantial financial services interests
- Action against a stockbroker over losses arising over an alleged breach of mandate
- Expert testimony in action against a senior director of a public company over the release of allegedly misleading information to the market
- Expert testimony in defence of an action against Allied Irish Banks and the Irish Minister of Finance brought by bond investors
He has also advised a mutual life assurance company on the regulatory consequences of the planned disposal of its businesses.
In previous roles, he has:
- Led a team to implement Basel II requirements in a major UK clearing bank.
- Reviewed internal controls, and risk management organisation and processes, at over 20 banks and trading firms, and oversaw the implementation of recommendations for change.
- Worked on business and operational strategy projects at eight stock and derivatives exchanges, including, Zurich (SOFFEX), Frankfurt (DTB). London (LSE) and Madrid
(Bolsa de Madrid).
- Led a project to bring into existence a new investment bank.
- Led a project to investigate trading losses at a leading bullion dealer and in the trading operation of one of world’s largest oil companies.
He was the partner in charge of a host of financial services audits covering almost all sectors of
the industry – retail, corporate and investment banking; insurance broking; derivatives trading and broking; commodity trading; asset management, as well as investment fund vehicles. Many of these audits required detailed knowledge of the workings of derivative products and the markets on which they are traded, the pricing and accounting valuation of these products, as well as the methods and organization required to manage derivative trading business.
He wrote Arthur Andersen’s publications on the accounting and control of financial futures and commodity trading operations. Has contributed to books on the accounting and management of financial trading operations.
He has spoken at many conferences, both in the UK and overseas, on the subject of derivative products, and related accounting and risk management issues. He addressed the Risk Management Association (a private group of risk managers from the largest banks) on issues around the implementation of Basel II. He occasionally addresses internal and external seminars organized by the GFSC.
In November 2010, he gave both written and oral evidence on auditing to the House of Lords Select Committee on Economic Affairs.