Schroders trader arrested on suspicion of insider dealing

22nd Jan 2013 12:26

British asset management firm Schroders confirmed London police on Tuesday arrested an employee on suspicion of insider dealing. The trader was among five people - two men and three women - who were detained as part of an investigation by the UK Financial Services Authority (FSA). They were questioned in the morning and expected to be released later on Tuesday.The watchdog said police in London, Lincolnshire, Leicestershire and North Yorkshire searched four premises as it probed into alleged market abuse and insider trading.Schroders would not name the individual who works directly for the institution, but said the person was suspended with immediate effect. "The FSA has informed us that the allegations relate entirely to this individual's personal actions. Schroders is not subject to any investigation," the company said in a statement. "There is no indication of any detrimental impact on our clients or financial results. We are not able to disclose any further details as this matter is subject to an on-going investigation of the individual concerned."The business employs nearly 3,000 people in 26 countries and provides investment and private banking services for institutional and retail clients.The arrests come as the FSA tackles market abuse. The group has won 21 criminal convictions since 2009, including last year's case against the owners of Blue Index, which pleaded guilty to insider dealing.RD