Ad hoc announcement - GAM International Management Limited reaches
settlement with the FCA
16 December 2021
PRESS RELEASE
Ad hoc announcement pursuant to Art. 53 listing
rules:GAM International Management Limited reaches
settlement with the FCA
GAM Holding AG’s UK subsidiary, GAM International Management
Limited (GIML), has reached a settlement with the Financial Conduct
Authority (FCA). The FCA opened the investigation into GIML
following the suspension of an investment director on 31st July
2018. This settlement concerns the operation of GIML’s conflicts of
interest framework between November 2014 and October 2017 and
conflicts of interest arising out of three specific investments
made by the Absolute Return Bond Fund (ARBF) team between October
2016 and March 2018. GIML has fully cooperated with the FCA’s
investigation, and this brings their investigation into GIML to a
close. There are no other regulatory investigations into GAM.
GIML is paying a financial penalty of GBP 9.1 million.
The GAM Group’s cash, and capital position remains robust. As at
the 30 June 2021 the GAM Group’s cash position stood at CHF 250
million and tangible equity at CHF 196 million, which is well in
excess of its regulatory capital requirements.
Peter Sanderson CEO said: “We fully accept the
findings of the FCA and acknowledge the conflicts of interest
shortcomings which occurred at the firm between late 2014 and early
2018.”
“Since then we have 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.”
“Our priority has always been, and remains, protecting the best
interests of our clients. I am pleased that, after the ARBF funds
were put into liquidation in 2018, we were able to return on
average, more than 100% of their value to our clients. With all
regulatory matters now concluded, we are looking forward and are
focused on our strategy of bringing GAM back to growth.”
Upcoming events:
17 February
2022 Full-year
results 2021
For further information please contact:
Charles Naylor
Global Head of
Communications and Investor RelationsT +44 20 7917 2241
Investor
Relations Media
Relations Media
Relations Jessica
Grassi Kathryn
Jacques Ute Dehn
Christen T +41 58
426 31 37 T +44 20 7393
8699 T +41 58 426 31
36
Visit us: www.gam.comFollow us: Twitter and LinkedIn
About GAM
GAM is a leading independent, pure-play asset manager. The
company provides active investment solutions and products for
institutions, financial intermediaries, and private investors. The
core investment business is complemented by private labelling
services, which include management company and other support
services to third-party asset managers. GAM employed 652 FTEs in 14
countries with investment centres in London, Cambridge, Zurich,
Hong Kong, New York, Milan, and Lugano as at 30 June 2020. The
investment managers are supported by an extensive global
distribution network. Headquartered in Zurich, GAM is listed on the
SIX Swiss Exchange with the symbol ‘GAM’. The Group has AuM of CHF
103 billion1, 2 (USD 110.4 billion) as at 30 September 2021.
Disclaimer regarding forward-looking
statements
This press release by GAM Holding AG (‘the Company’) includes
forward-looking statements that reflect the Company’s intentions,
beliefs or current expectations and projections about the Company’s
future results of operations, financial condition, liquidity,
performance, prospects, strategies, opportunities and the industry
in which it operates. Forward-looking statements involve all
matters that are not historical facts. The Company has tried to
identify those forward-looking statements by using words such as
‘may’, ‘will’, ‘would’, ‘should’, ‘expect’, ‘intend’, ‘estimate’,
‘anticipate’, ‘project’, ‘believe’, ‘seek’, ‘plan’, ‘predict’,
‘continue’ and similar expressions. Such statements are made on the
basis of assumptions and expectations which, although the Company
believes them to be reasonable at this time, may prove to be
erroneous.
These forward-looking statements are subject to risks,
uncertainties, assumptions and other factors that could cause the
Company’s actual results of operations, financial condition,
liquidity, performance, prospects or opportunities, as well as
those of the markets it serves or intends to serve, to differ
materially from those expressed in, or suggested by, these
forward-looking statements. Important factors that could cause
those differences include, but are not limited to: changing
business or other market conditions, legislative, fiscal and
regulatory developments, general economic conditions, and the
Company’s ability to respond to trends in the financial services
industry. Additional factors could cause actual results,
performance or achievements to differ materially. The Company
expressly disclaims any obligation or undertaking to release any
update of, or revisions to, any forward-looking statements in this
press release and any change in the Company’s expectations or any
change in events, conditions or circumstances on which these
forward-looking statements are based, except as required by
applicable law or regulation.
1 Including CHF 20.5m of equity funds in liquidation (GAM Star
(Lux) European Momentum).
2 Including CHF 257.0m of absolute return funds in liquidation
(GAM Star (Lux) European Alpha, GAM Absolute Return Equity Europe,
GAM Star (Lux) Convertible Alpha, GAM Star (Lux) Global Alpha).
- Ad hoc announcement_GAM International Management Limited
reaches settlement with the FCA_EN
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