A Legal & General Investment Management employee – believed to be a trader – has been arrested and interviewed at a London police station yesterday on suspicion of insider dealing.
The arrest was the ninth in two years in an on-going insider dealing investigation conducted by the UK's Financial Services Authority (FSA) and the Serious Organised Crime Agency.
Searches were conducted yesterday at a London business address and two homes in London and Kent.
“We can confirm that a 44-year-old man employed by Legal & General Investment Management was arrested on 16 February and released on bail pending further enquiries,” Legal & General Investment Management said in a statement to the press. “We are not aware of any detriment caused to customers or any impact on our financial results.”
As of 30 June last year, Legal & General has £347 billion worth of asset under management spanning 3,000 clients.
In March 2010, a number of businesses and homes were searched in the UK in the FSA’s largest ever insider dealing operation. In April, further searches were conducted and another arrest was made.
Seven others have previously been arrested as part of the on-going investigation, including Exane BNP Paribas trader Clive Roberts, hedge fund Moore Capital trader Julian Rifat and Novum Securities broker Graeme Shelley.
In the past few years, the FSA has secured 11 convictions for insider dealing, including Malcolm Calvert, a former equities market maker at stock broker Cazenove on 11 March 2010.
The regulator is currently prosecuting 15 individuals for insider dealing, including two former directors and one former senior trader of specialist contract for difference brokerage Blue Index. The trial is commencing 16 April.