Swiss asset manager GAM has decided to accept a decision by the SIX sanctions commission on an accounting issue and will pay the fine imposed by the stock market operator.
SIX, the Zurich-based stock exchange operator, ordered GAM to pay a fine of 400,000 Swiss francs plus costs of a further 100,000 francs – in total half a million francs ($515,000). The asset manager has accepted the verdict and will pay the fine and the additional costs, it said in a statement on Thursday.
The sanction related to the accounting treatment of future performance fee payments as a financial liability following GAM’s acquisition of Cantab Capital Partners in 2016.
The Consequences for GAM
As a consequence, GAM is required to recognize the financial liability at fair value and to restate any impacted historical comparative amounts in its next consolidated financial statements of February 20.
GAM said its expects to have made a pretax profit of about 10 million francs in 2019.
