THREE fund management employees were arrested in London yesterday as part of a Financial Services Authority (FSA) probe into insider dealing and market abuse.
The FSA said three men aged 33, 37 and 39 have been arrested and questioned. One of the men is an analyst at hedge fund GLG.
GLG’s parent company Man Group said in a statement that neither company was the subject of the probe, and that the employee had been suspended.
“Man has been informed by the FSA that the investigation concerns the individual’s actions as a private individual and not as an employee of Man or GLG,” said a spokesperson yesterday.
All three are London professionals working in the fund management industry and are all employed at firms in the capital, one source with knowledge of the investigation said.
The trio were taken into custody for questioning. The FSA declined to comment further on the identity of the individuals.
The Metropolitan Police also carried out searches at six locations in the City and Greater London area as part of the operation.
The FSA said the arrests are not linked to any other insider dealing investigation such as Operation Tabernula.
The City’s regulator has secured 21 convictions for insider dealing as part of its crackdown on a crime that once went largely unpunished, and is prosecuting an additional six. The maximum sentence for insider dealing is seven years’ imprisonment.
Yesterday’s arrests come one month after the FSA and the police swooped on two men and three women in several locations across the country, including a trader at asset manager Schroders, for suspected insider dealing. They were later released on bail.