GAM has agreed to pay a fine to the Swiss stock exchange after sanctions were upheld regarding its failure to recognise financial liabilities during its purchase of UK fund house Cantab in 2016.
As well as the fine – amounting to 400,000 Swiss francs (€373,000) and 100,000 Swiss francs in costs – the firm will also include financial liability in its accounts.
GAM said it “held a different point of view in good faith on this technical accounting matter, due in part to external and independent expert advice”, but agreed to accept the penalty imposed by SIX’s Sanctions Commission.
As a result of the decision, the firm is required to recognise the financial liability at fair value and to restate any impacted historical comparative amounts in its next financial statements.
The fund manager currently estimates the fair value of the financial liability to be recognised at around 35 million Swiss francs as of the end of last year. This will only crystallise once matching performance fees are received, it said.
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