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While GAM wants to illustrate with the suspension that its risk management works, this point is up for debate among observers. A London-based fund manager told finews.com that Haywood had enjoyed too many freedoms for too long – the list of his seemingly minor infractions all but proves this.

«Tighter risk management would have caught even the minor infractions far earlier,» the fund manager said. But Haywood had been free to operate largely as he saw fit, which manifested itself in his investment strategy. «GAM had to respond before clients were hurt,» the person said.

Risk Management Doubts

While CEO Friedman has reinforced and upgraded the role of GAM's risk management, the Haywood case shows the asset manager still has room to improve. The deficiencies are linked to pay schemes that GAM follows – and which has drawn heated criticism from shareholders.

Formula-based compensation – earning a share of fees – has long been part of GAM's boutique culture, a bid to drive growth and investment performance. Former Chairman Johannes de Gier and ex-CEO David Solo also regularly drew criticism for their princely pay – a system that hasn't changed under Friedman.

«It creates big successes and failures, and appeals to the worst instincts of people,» a former top executive told finews.com. «You wouldn't let a dog guard a plateful of sausages, would you?»