Cru Investment Management marketed the CF Arch cru investment funds to financial advisers before the funds were suspended in March 2009 due to lack of liquidity.
Mr Danner was also director of SD Asset Management in Cardiff and advised 390 of the firm's clients to invest £39m in Arch Cru funds. The firm was heavily weighted in favour of the funds without understanding the risks involved or the composition of the funds underlying assets.
The FSA said Mr Danner lacked understanding and competence regarding the Arch Cru funds and did not seek further information about their composition and risk. He has been prohibited from performing any function in relation to any regulated activity for failing to act with integrity and behaving in a way which fell below the standards required of him.
{desktop}{/desktop}{mobile}{/mobile}
The conflict of interest between Mr Danner and Arch cru funds was not disclosed until a new compliance officer took over in 2008.
He also failed to vet SDAM's appointed representatives or ensure their compliance with regulatory requirements.
Tracey McDermott, FSA director of enforcement and financial crime, said: "Danner's failures were comprehensive. He both failed to understand or act upon either his personal duty to his customers of his obligations as principal to a number of Appointed Representatives.
"Even when the seriousnesss of his shortcomings was plain to see, Danner failed to put the problems right-despite others drawing them to his attention."
The FSA would have fined Mr Danner £90,000 were it not for verifiable evidence of serious financial hardship.

• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.