Swiss regulator moves to sanction GAM over 'potentially material misstatement' in Cantab liabilities

Acquisition in 2016

Swiss listing authority SIX Exchange Regulation has proposed sanctions against GAM amid claims that it understated liabilities from its 2016 acquisition of Cantab Capital Partners.

GAM's latest regulatory difficulties relate to its 2017 financial statements which SIX said this morning (4 December) contained "a potentially material misstatement" with regard to the treatment of a financial liability in relation to the contractual arrangements of the acquisition. Update: GAM shares plunge 30% on 2019 profit warning The Swiss asset management giant, which acquired Cantab in October 2016, is said to have "failed to estimate this obligation and to recognise a financial liability as of the acquisition date and at subsequent balance sheet dates". SIX explained: "It i...