GAM has confirmed that its investigation into absolute return bond funds head Tim Haywood began after an internal whistleblower raised concerns.
Following the investigation's launch, GAM said the whistleblower expanded on the firm's initial concerns and contacted the Financial Conduct Authority.
The statement read: 'The internal investigation evolved as more facts and circumstances were uncovered and identified a number of potential misconduct issues, the cumulative effect of which led to the decision to suspend Mr. Haywood.'
Haywood was found to have potentially failed to carry out due diligence and make internal records accessible, accepted gifts and entertainment without pre-approval, signed contracts alone when two signatures were required and used his personal email for work purposes.
GAM will continue to protect the whistleblower's identity, with Group CEO Alexander Friedman saying: 'At the heart of every modern financial services firm’s systems and controls should be a culture that encourages people to come forward with concerns about colleagues’ behaviour.
'The only way to maintain that culture is to protect those who are brave enough to do so and to hold accountable those found to be breaking the rules.'
The liquidation of the absolute return bond fund range is ongoing, with between 60% and 87% of the funds returned to date.