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Whistleblower's FCA Betrayal: Millions at Risk?
9 Dec, 2025
Summary
- Former GAM manager blew whistle on risky investments.
- FCA faced criticism for slow response and lack of action.
- Whistleblowers face career ruin and financial strain.
Daniel Sheard, a former co-manager at GAM, became a whistleblower after discovering concerning investment activities linked to Greensill Capital. He noted a shift towards illiquid and uninsured assets within daily dealing funds, raising alarms about investor protection. Sheard's internal whistleblowing attempts were met with inaction, prompting him to report to the UK's Financial Conduct Authority (FCA) in early 2018.
Despite Sheard's concerns about ongoing risky transactions, the FCA's investigation was notably slow. Months passed between his initial report and a comprehensive interview, during which the funds he managed were suspended and began winding down. Sheard felt the FCA investigators lacked technical expertise, exacerbating his frustration and sense of betrayal.
Sheard's whistleblowing led to significant personal and professional repercussions, including difficulty finding new employment in finance and substantial legal fees. His case, along with that of George Patellis, has fueled debate about the UK's whistleblower system, contrasting sharply with the more robust reward structures seen in the United States. Advocates push for systemic changes to better protect and incentivize those who speak out against financial misconduct.
