THE Financial Services Authority (FSA) is to launch its own probe into Gartmore star fund manager Guillaume Rambourg, sparking fresh uncertainty over his long-term future at the fund firm.
The investigation comes just a month after Rambourg returned to the firm as an analyst following an internal probe that found he had breached internal regulations by directing trades to specific brokers.
Shares fell by 5.34 per cent to 117 pence as investors fretted over the fresh uncertainty triggered by the regulator's move.
"The FSA has now confirmed that it is to commence an investigation into the conduct of Guillaume Rambourg to determine whether he has met the standards required of an FSA approved person," Gartmore said in a statement.
It added that the FSA probe centred only on Rambourg and "not any other individuals or Gartmore itself."
Gartmore said it would apply for a licence to reappoint Rambourg as a fund manager "subject to a satisfactory outcome of the FSA investigation."
Gartmore suspended Rambourg in late March. He returned to the firm as an analyst at the end of April.
City A.M. Reporter