BlackRock’s Mark Lyttleton, who was picking winning stocks as an 8-year-old, became a U.K. poster boy for retail clients seeking hedge-fund style investments after posting positive returns in 2008 when markets crashed. Money poured in.
With the funds lagging behind peers, he was arrested last month and is under investigation as part of a Financial Conduct Authority probe into insider trading, two people with knowledge of the investigation said May 13, asking not to be identified because the matter isn’t public.
'He was a star manager with a high profile', said Adrian Lowcock, senior research analyst at Hargreaves Lansdown Plc, the U.K.’s biggest retail broker. 'Sadly, it has negative connotations for the wider industry of finance, which doesn’t have the best reputations anyway, but it’s important for the FCA to investigate any potential laws being broken to restore confidence for investors'.
Insider-trading probes have led to arrests of employees at other firms, including Legal & General, Schroders andGLG Partners, as U.K. regulators stepped up their pursuit of financial crime from day-traders to the country’s biggest institutional investors.
Hit the link below to access the complete Bloomberg article:
image: © Kai Schreiber