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Release Date: 29th March 2022

To access the original FCA document, click here.

Summary

GAM International Management Limited (GIML) was fined £9,103,523 by the Financial Conduct Authority (FCA) on 29 March 2022 for breaches of Principles 2 and 8 of the Authority’s Principles for Businesses. These breaches occurred between 28 November 2014 and 8 March 2018. The fine was reduced from £13,005,033 due to an early settlement agreement. The FCA found that GIML failed to manage conflicts of interest effectively and did not conduct its business with due skill, care, and diligence.

Key Takeaways for Other Firms:

Summary of Findings:

In conclusion, the FCA’s action against GIML highlights the necessity for asset management firms to maintain rigorous conflict management frameworks, diligent governance, and transparent operations. Firms must ensure regular oversight, thorough documentation, and effective risk assessments to mitigate conflicts of interest and ensure regulatory compliance, thereby protecting customer interests and maintaining trust in the financial industry.

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