Asset manager, GAM International Management Limited (GIML), has been handed a £9.1m fine by the FCA for “failing to conduct its business with due care and attention”.

The regulator also said the firm had failed to adequately manage conflicts of interest.

Former investment director and business unit head at GIML, Timothy Haywood, has also been fined by the FCA for £230,000.

The FCA’s investigation concluded that GIML failed to manage conflicts of interest arising from three transactions, two of which were linked to Greensill Capital (UK) Ltd, where Haywood was the investment manager making investment decisions.

Potential incentives were offered which would have provided benefits to GIML or its parent company and although these were not taken up, the FCA stated that they were not dealt with properly by the firm.

“Conflict of interest policies were not followed and as a result, any potential conflicts were not considered by those who should have been responsible,” an FCA statement said.

Haywood also received gifts and entertainment, including travelling on a Greensill private aircraft, but failed to record them in a “timely manner” with GIML, the regulator added.

Commenting, FCA executive director of enforcement and market oversight, Mark Steward, said: “A robust framework, properly implemented and followed by all staff, is required to manage any conflicts of interest. GIML failed to do this. In an asset manager, this is vital in ensuring decisions are taken for the benefit of the investors. Mr Haywood’s disclosure failings are equally serious ones.

“The FCA expects asset managers and their staff to be scrupulous in identifying and managing  conflicts and their risks. This case should send a clear warning to the market.”

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