The disgraced executive at the Swiss asset manager GAM Tim Haywood, who was fired last week for a “gross misconduct” said he is looking forward clearing his name.
The former investment director and boss of GAM’s unconstrained/absolute return bond strategy was initially suspended in July after an internal investigation, which allegedly found issues with Haywood’s risk management procedures and record keeping.
The company at the time said the investigation did not raise concerns about Haywood’s honesty.
A separate letter to investors on the GAM website said the investigation found Haywood may not have carried out proper due diligence on some investments, had potentially breached the company’s policy around signatures, and used his personal email for work purposes.
The affair led to an exodus of investors – following the scandal, GAM experienced a high level of redemption requests. The asset manager then decided to liquidate nine unconstrained/absolute return bond funds.
In October, GAM reported that unconstrained/absolute return bond strategies outflows contributed £8.4bn to a total of £13.2bn outflows the company saw in the three months to Semptember 2018.
Last Friday, GAM reported a loss of CHF929.1m (£704.02m) for 2018 and fired Haywood for “gross misconduct”.
Haywood said he planned to appeal the decision.
“After 15 months of investigations most of the allegations have been dropped,” Haywood said in a statement on Monday.
“The remaining allegations leveled against me do not by any stretch constitute ‘gross misconduct’, even if they weren’t substantially disputed, which they are,” he said.
“I am exploring all legal options and look forward to the opportunity to clear my name and return to work.”