Schroders employee one of five arrested in insider dealing probe

It has emerged one of the five individuals arrested in connection with an investigation into insider dealing and market abuse works for Schroders.

The asset management firm stressed the company was not being investigated and that the individual was not a fund manager or analyst. It also confirmed it had suspended the individual with immediate effect.

In a statement Schroders said: 'On Tuesday 22 January, a Schroders employee was arrested by the FSA and City of London Police on suspicion of insider dealing. The individual has been 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.

'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.'

Earlier in the day, the regulator said in a statement it had worked with police forces to execute search warrants in London, Lincolnshire, Leicestershire and North Yorkshire, leading to the arrest of two men aged 37 and 62, and three women aged 39, 51 and 63.

The individuals are currently in custody to be questioned and the FSA said none have been charged.

The watchdog added insider dealing is a criminal offence that is punishable by a fine or up to seven years imprisonment.