Information on ARBF

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16 December 2021

Update from GAM Chief Executive, Peter Sanderson

Today we have announced that our UK subsidiary, GAM International Management Limited (GIML), has reached a settlement with the Financial Conduct Authority (FCA). The FCA opened an investigation into GIML in 2018 following the suspension of an Investment Director on the Absolute Return Bond Fund team. 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.  

This penalty will not impact the way we operate the business now or in future.

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, our governance, control frameworks, policies, and training to ensure that all lessons learned from that period are fully embedded into our firm and culture. We have appointed a new independent chair to GIML’s board of directors and have established a global conflicts of interest committee chaired by the Global COO which meets quarterly and more often if necessary.

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. We have made considerable progress with the strategic transformation of GAM and are seeing continuing good investment performance with 76% of assets under management outperforming their benchmark over the past 5 years as at the end of September. We have been rated the best Swiss financial services provider for corporate governance for the past three years. In addition, we continue to attract and retain some of the brightest minds in the industry, which reflects the opportunity we all see to provide investment leadership, innovation, and sustainable thinking for our clients.
 

Letter from GAM CEO Peter Sanderson (EN)

16/12/2021

Letter from GAM CEO Peter Sanderson (DE)

16/12/2021

Letter from GAM CEO Peter Sanderson (FR)

16/12/2021

Letter from GAM CEO Peter Sanderson (IT)

16/12/2021
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