FCA imposes £9.1M fine on GAM International Management
The UK Financial Conduct Authority (FCA) announces that it has fined GAM International Management Limited £9.1 million and Timothy Haywood £230,037 for conflicts of interest and gifts & entertainment matters.
Both the firm and Mr Haywood agreed to resolve all issue of fact and liability and so they qualified for a 30% discount. The financial penalties would have been £13 million and £319,044 respectively, had they not agreed to resolve the case.
Between 28 November 2014 and 25 October 2017, GAM International breached Principle 2 of the FCA’s Principles for Business by failing to conduct its business with due care, skill and diligence. In particular, the FCA considers that the firm failed to ensure that its systems and controls for the identification, management and prevention of conflicts of interest operated effectively during this period.
Further, between 20 October 2016 and 8 March 2018, the firm breached Principle 8 of the FCA’s Principles for Business by failing to manage conflicts of interest fairly between itself and its customers and different customers. In particular, the FCA considers that GAM International failed to adequately control the conflicts of interest arising out of three specific investments made by the GIML Absolute Return and Long Only team during this period.
When reaching this resolution, the FCA has taken into account that the firm has cooperated fully with the Authority’s investigation and has committed significant time and resources in doing so.