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British lord asks if UK government is probing GAM fund

British lord asks if UK government is probing GAM fund
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By Tom Bergin and John Miller

LONDON/ZURICH (Reuters) – A member of Britain’s House of Lords has asked the government if it is investigating the GAM Greensill Supply Chain Finance Fund in relation to the pricing of investments and activities of its managers, according to Parliament’s website.

Paul Myners, a former financial services minister, submitted a question asking “Her Majesty’s Government whether they are investigating, or intend to investigate, the management of, investment valuations used by, and relationships between managers and businesses invested in, the GAM Greensill Supply Chain Finance Fund.”

Greensill and GAM Holding declined to comment on Wednesday. Myners was not immediately available for comment.

The fund which is managed by Zurich-based GAM Holding, with help from London-based Greensill, buys short-term debts linked to companies’ expected payments from customers or payments due to suppliers.

GAM’s share price has halved in the past year after the suspension of its star fund manager, Tim Haywood, for what it said was due diligence failures. Haywood denied any wrongdoing.

Reuters reported in April that Haywood’s suspension followed complaints from a whistleblower regarding his purchase of £550 million worth of bonds issued by Sanjeev Gupta’s GFG Alliance, which were backed by diesel power generators that have largely sat idle in recent years.

GFG Alliance was not immediately available for comment on Wednesday.

Myners question does not mention Gupta or his companies.

(Reporting by John Miller in Zurich and Tom Bergin in London; Editing by Michael Shields and Jane Merriman)

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