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Newton fires fund manager amid share rigging probe

Move follows accusation from City regulator that four fund firms shared information ahead of IPOs.

 
Newton fires fund manager amid share rigging probe
 

(Update, adds Newton statement) Newton Investment Management has fired a fund manager following a regulatory probe into the rigging of share prices. 

The identity of the fund manager is yet to be revealed. Newton said it was not in a position to comment on the news, revealed in yesterday's Sunday Times.  

Last week the Financial Conduct Authority (FCA) said it was investing four fund firms over the possibility they may have broken competition rules. 

Newton, along with Artemis, Hargreave Hale and River and Mercantile, were alleged to have shared information by disclosing the price they intended to pay in relation to initial public offerings (IPOs) and placings shortly before share prices were set. 

The FCA alleged that in 2014 Artemis and Newton shared information about the price they intended to pay for shares in relation to an IPO.

According to the Sunday Times, the £240 million float of the online holiday company On the Beach (OTB) is one of the IPOs at the heart of the FCA probe.  

The company, which listed in 2015, is said to be one of three deals under investigation.

Newton said in a statement: 'We are not able to comment on individuals, but we can confirm that we have taken disciplinary action as a result of the activity. One employee was suspended at the time; this individual has since been subject to disciplinary action and dismissed.'

 

3 comments so far. Why not have your say?

Mark Stringer

Dec 04, 2017 at 15:22

So what! It's the tip of the mother of all icebergs when it comes to fiddles and sharp practices.

The "city" should have a fiddler as its emblem.

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Lilly

Dec 05, 2017 at 10:36

Fiddler on the Floor? 'if I was a rich Man"

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Mark Stringer

Dec 05, 2017 at 11:29

Lilly,

Read your comment as I was eating my porridge and nearly choked with laughter.

"Fiddler on the trading floor", it could be on Broadway. Topol is probably too old now but Roger Levitt, Mark Carney, Phillip Green or the current head of the FCA could do it.

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