Schroders trader arrested as part of FSA insider dealing probe | LabourBlawg

Schroders trader arrested as part of FSA insider dealing probe

by Employment Law Advice Solicitors on February 10, 2013

An equity trader at Schroders was arrested in January on suspicion of insider dealing, reports the Financial Times.

The Financial Times confirmed in January that an equity trader at Schroders as well as four other persons were arrested as part of the Financial Services Authority’s ongoing escalation of its investigations into insider trading in the City of London.

The Financial Services Authority is a prosecuting authority for the criminal offence of insider dealing (as defined by the Criminal Justice Act 1993). Insider dealing occurs where a person (or persons) use, or encourage others to use, information about a company which isn’t widely available, for their own financial advantage. The FSA can pursue an individual through the criminal justice system if there is enough evidence to provide a realistic prospect of convicting the defendant and if a criminal prosecution is in the public interest. The recent arrests are part of the FSA’s ongoing probe into potentially criminal insider dealing allegations in the City of London.

The Financial Services Authority has enjoyed a degree of success in recent years in its insider dealing prosecutions. It has succeeded in pursuing 21 different individuals for criminal prosecution for insider dealing since 2009, including the successful cases against James Sanders, Christian Littlewood, and Thomas Amman.

It was reported that five people in total were arrested in the most recent police operation in January 2013. Police would not confirm who the people arrested were but it is believed that one of the persons is an equity trader at Schroders, a Mr Damian Frank Clarke. The Financial Times reported that several people familiar with the investigation identified Mr Clarke as being one of those arrested. The police would not comment on the matter, save to state that none of the persons arrested were fund managers and that these arrests were not connected to Operation Tabernula, the police probe in to insider trading in the City of London.

Being arrested on suspicion of having committed a crime can be a potentially serious matter when it comes to the criminal law implications. It can also have serious repercussions relating to the person arrested’s employment and their future employment prospects. If you work in the City of London (or in finance generally) and have been charged with a financial crime then you risk going to jail and/or being struck off the Financial Services Authority register. This is obviously a serious matter as it will severely affect your potential to work in your chosen industry at a later date.

If you or anyone that you know has been accused of a financial crime then it’s recommended that you (or they) obtain specialist legal advice from a criminal defence solicitor.

Employment Law Advice Solicitors are employment law solicitors based in the City of London.

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