A probe into Tim Haywood, the former director of Gam Investments, was prompted by concerns that were raised by a whistleblower.
Gam Investments is an asset management company that has its headquarters in Zurich. In November last year, it launched an internal investigation into the conduct of Haywood, however, the whistleblower went on to communicate with the Financial Conduct Authority four months later.
Haywood was based in the London office of the company. Last July, he was suspended following the revelations of an internal investigation that uncovered that the investment director broke the policy on gifts and entertainment of the company.
The company also discovered that he may have breached internal policies on risk management and record-keeping. The investigators also found that he may have breached the signatory policy and made use of his personal email address for work purposes.
The move prompted big investor redemptions and further declines in share price of GAM. Late last month, the asset manager ultimately took the decision to liquidate funds pf Haywood and return money to investors.
The suspension of Haywood resulted in the liquidation of the nine unconstrained or absolute return bond funds that he was responsible for. An internal disciplinary process is currently in-process.
Alexander Friedman, the chief executive of Gam Group, stated: “At the heart of every modern financial services firm’s systems and controls should be a culture that encourages people to come forward with concerns about colleagues’ behaviour.”
He added: “The only way to maintain that culture is to protect those who are brave enough to do so and to hold accountable those found to be breaking the rules.
He continued: “This is central to trusted client relationships and we will never compromise on this point. I’m grateful to every one of our clients that have taken the time to understand our approach to these issues and we continue to work tirelessly in their best interests.”