GAM International Management Ltd. said Thursday it will pay a £9.1 million ($12.1 million) fine to settle accusations brought by U.K. Financial Conduct Authority of not managing conflicts of interest related to debt held by Greensill Capital.
Former GAM fund manager Tim Haywood will pay a penalty of £230,037 for failing to manage conflicts of interest and for breaching GAM's gifts and entertainment policy.
GAM was fined for failing to manage conflicts of interest between 2014 and 2017, and for conflicts related to three investments made by the company's absolute return and long-only funds between 2016 and 2018. Mr. Haywood was suspended in July 2018 following an internal GAM investigation.
Since GAM and Mr. Haywood agreed to resolve all issue of fact and liability, FCA discounted the fines by 30%.
The FCA is not publishing details of the case because another party that could be affected by the outcome of the investigation has not been notified. To avoid an enforcement delay, the FCA instead published warning notices for GAM and Mr. Haywood.
GAM International Management, the U.K. subsidiary of GAM Holding AG, said in a statement that it fully cooperated with the FCA, and there are no other regulatory investigations into GAM Holding CEO Peter Sanderson said in the statement that the company has "significantly strengthened our senior management team, governance, control frameworks, policies and training to ensure that all lessons learned from that period are fully embedded into our firm and culture." After the funds in question were liquidated in 2018, GAM was able to return more than 100% of assets to clients, he said.
