SIX confirms fine on GAM Holding AG is final and legally binding

Maria Nikolova

GAM Holding AG has accepted the decision of the Sanctions Commission of SIX Swiss Exchange and has waived its right to appeal.

Further to its decision from January 2020 to impose a fine of CHF 400,000 on GAM Holding AG for breaching IFRS accounting standards, the Sanctions Commission of SIX Swiss Exchange today confirms the fine is final and legally binding.

SIX explains that, following the announcement of the fine, GAM Holding AG has accepted the decision of the Sanctions Commission and has waived its right to appeal.

The fine is related to GAM’s acquisition of Cantab Capital Partners. In particular, it was claimed that GAM Holding AG had failed to recognize a financial liability in the consolidated balance sheet of the 2017 IFRS annual financial statements. Furthermore, GAM Holding AG had not included the effects of the revaluation of the financial liability in the consolidated income statement of the 2017 IFRS annual financial statements.

In connection with the acquisition of Cantab Capital Partners, GAM Holding entered into a contractual obligation to pay a share of future performance fees to the previous owners for an indefinite period of time. GAM Holding AG did not recognize this contractual obligation as a financial liability at the acquisition date and at subsequent balance sheet dates. Instead, GAM Holding disclosed it as a contingent liability.

The Sanctions Commission has determined the obligation in question as a financial liability under IFRS accounting standards, which must be recognized in the balance sheet and remeasured at each reporting date. The Sanctions Commission qualified the breach of the applicable IFRS rules as a significant violation that was committed negligently.

As a result, the Sanctions Commission imposed a fine of CHF 400,000 on GAM Holding AG. The decision of the Sanctions Commission is now final and legally binding given that GAM Holding AG has waived its right to appeal.

Read this next

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

Digital Assets

Prisma Finance suffers $10 million crypto exploit, attack ongoing

Liquid staking protocol Prisma Finance fell victim to a security exploit on March 28, resulting in nearly $10 million in Prisma mkUSD and wrapped stETH being stolen by hackers.

<