The Financial Conduct Authority has fined GAM International Management Limited £9.1m and Timothy Haywood £230,037 for conflicts of interest and gifts & entertainment matters.
Both the firm and Haywood - the former head of GAM's absolute return bond fund unit - agreed to resolve all of the issues and therefore qualified for a 30 per discount.
The financial penalties for the two would have been £13m and £319,044 respectively, had they not agreed to resolve the case.
In the warning notice statements, the FCA had said between November 28, 2014 and October 25, 2017, GAM breached principle 2 of the FCA’s principles for business by failing to conduct its business with due care, skill and diligence.
The City watchdog said the firm failed to ensure that its systems and controls to identify and prevent conflict of interest were effectively in place.
It said between October 20, 2016 and March 8, 2018, the firm also breached principle 8 by failing to manage conflicts of interest fairly between itself and its customers and different customers.
“In particular, the FCA considers that GIML 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,” it said.
In its warning notice to Haywood, the FCA said between October 20, 2016 and November 3, 2017, he failed to take “reasonable steps” to ensure that the business complied with the relevant regulatory rules requiring that conflicts of interest were managed fairly.
This breach came from two investments made by the GIML absolute return and long-only team during this period.
Between March 29, 2017 and January 8, 2018, the regulator also said Haywood failed to act with due skill care and diligence as he failed to comply with the gifts and entertainment policy of his employer.
The FCA said in normal circumstances, it would publish final notices providing full details of its case.
However, another party who is not a subject of the final notices may be affected by them and the regulator is required to consult with that party and provide them with an opportunity to make representations on the references to it before publication is possible.
The FCA said it will publish final notices when it is able and cannot comment further.
sonia.rach@ft.com
What do you think about the issues raised by this story? Email us on FTAletters@ft.com to let us know
