The arrest of a former BlackRock fund manager may move the regulator from small-fry insider-trading cases to its first big fish after years of criticism for pursuing dentists and print-room workers.
Bloomberg reports that The Financial Conduct Authority arrested Mark Lyttleton, who once ran a BlackRock fund with as much as $3bn of assets in London on April 30, according to two people familiar with the case.
That follows the arrests of managers at hedge funds in two unrelated probes this year.
'I think it’s been a big success', Jamie Symington, the head of the wholesale group enforcement division at the FCA, who oversees insider-trading prosecutions, said in an interview before the Lyttletons’ arrests.
The declaration marks a shift in tone from two years ago, when Tracey McDermott, the head of enforcement at the FSA, said they 'recognize the need to go after bigger fry' who are 'causing the most damage to the market'.
The regulator was 'determined to take insider-dealing enforcement right into the heart of the city', said McDermott, who is Symington’s boss at the FCA.
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