A Schroders employee and four other people have been arrested in the latest swoop by the Financial Services Authority on suspected insider trading.
The City regulator said it worked with police forces in the City of London, the east Midlands and the north of England to execute four search warrants in the City of London, Lincolnshire, Leicestershire and North Yorkshire.
Two men and three women have been taken into custody to be questioned in connection with the investigation into insider dealing and market abuse. One of the arrests was made at the offices of Schroders, the City fund-management firm.
Schroders said the company was not under investigation and confirmed an employee had been arrested by City of London police on suspicion of insider dealing. "The individual has been suspended with immediate effect," a spokesman said.
The FSA said no further details would be released and no charges had been made. "The arrests are not linked to any other ongoing insider-dealing investigation," it added.
Shroders said: "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 ongoing investigation of the individual concerned."
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