The FSA is investigating Ravi Sinha after he was reported to the Financial Services Authority by Sir Callum McCarthy, reports The Times.  McCarthy, the FSA’s former chairman, was appointed chairman of JC Flowers in Europe a few days before the improprieties were uncovered. Sinha unexpectedly left the US private equity group at the end of last year.

Sinha is alleged to have siphoned off £1.3 million of ‘phantom’ fees from an attempted listing of a Luxembourg-based wealth management firm, owned by his fund.