FCA fines GAM and Haywood over Greensill-linked lapses

The Financial Conduct Authority has fined GAM International Management £9.1m and former star fund manager Tim Haywood more than £230,000 for failing to manage conflicts of interest linked to the Greensill scandal.

The regulator said it fined GAM and Haywood for "conflicts of interest and gifts and entertainment matters". GAM's penalty and the £230,037 charged to Haywood were both reduced by 30% because they accepted liability and resolved the case.

Haywood bought illiquid debt linked to Sanjeev Gupta, the UK metals tycoon, and Lex Greensill, the now disgraced Australian financier. Greensill's supply chain finance business collapsed in 2021.

GAM suspended Haywood in 2018, prompting a run on his bond funds and forcing GAM to suspend and liquidate the funds. GAM sacked Haywood in 2019 for gross misconduct.

Haywood failed to manage conflicts of interest between October 2016 and November 2017, the FCA said. The watchdog also said he failed to comply with GAM's gifts and entertainment policy between March 2017 and January 2018.