Schroders rogue trader: no impact on clients

Schroders Investment Management has distanced itself from a rogue trading scandal involving an employee of the asset manager.

By None

Schroders has distanced itself from a new rogue trading scandal involving an employee of the asset manager.

Tuesday UK watchdog, the Financial Services Authority (FSA), and police arrested five people in connection with an investigation into insider dealing and market abuse.

Schroders has confirmed one of the individuals - whom are currently being held in custody to be questioned but have yet to be charged - was an employee but would not confirm a name.

Press reports have identified the employee as Damian Clarke and the FSA was quick to point out that the allegations have nothing to do with Schroders.

"Schroders is not subject to any investigation. There is no indication of any detrimental impact on our clients or financial results," the asset manager said in a statement.

The arrests are also not linked to other on-going insider dealing investigations at the FSA, including that of Legal & General equity trader Paul Milsom, who was reportedly arrested last week.

"On Tuesday 22 January 2013, a Schroders employee was arrested by the FSA and City of London Police on suspicion of insider dealing," Schroders said. "The individual has been suspended with immediate effect."

In the UK, insider dealing is a criminal offence punishable by a fine or up to seven years imprisonment.

"The FSA has informed us that the allegations relate entirely to this individual's personal actions," Schroders said. "We are not able to disclose any further details as this matter is subject to an on-going investigation of the individual concerned."

Clarke could not be reached for comment.

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