Schroder’s trader pleads guilty to insider trading

Former Schroders trader admits insider dealing.

A former equities trader at Schroders Investment Management has pleaded guilty to nine counts of insider trading, the Financial Conduct Authority has confirmed.

Damian Clarke pleaded guilty to seven counts of insider trading in July 2015, and pleaded guilty to the remaining two counts today.

Clarke became an equities trader at Schroders in 2006, having worked as a hedge funds assistant prior to that. The insider dealing charges relate to the period of 2003 to 2012.

The court heard that Clarke had used insider information about mergers and acquisitions, and corporate events, to his advantage.

Clarke admitted to dealing based on the information he had obtained.

Mark Steward, director of enforcement and market oversight at the FCA underscored that insider dealing is a “dishonest crime” and “not a means for city professionals to make money on the side.”

He added:  “Mr Clarke abused the trust that came with a city career by cheating the system and, in doing so, he let down the expectations of the whole community.  The FCA remains dedicated to stamping out market abuse in all its forms.”

The FCA has secured 27 convictions for insider dealing since 2009.

A spokesperson for Schroders told The TRADE: “Mr Clarke is no longer employed by Schroders, and these proceedings relate entirely to his personal actions.

“Schroders has not been subject to any investigation, and has provided full co-operation to the FCA throughout this matter.  There is no indication of any detrimental impact on our clients or financial results.”

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