Ex-Schroders trader pleads guilty to insider dealing

GavelA former Schroders equities trader pleaded guilty to nine counts of insider dealing this week, according to the Financial Conduct Authority (FCA).

Damian Clark will be sentenced at Southwark Crown Court on June 13 this year for the offences that took place on July 24, 2015.

Clark admitted dealing on the basis of inside information he obtained during the course of his employment at Schroders. Initially employed by the firm as a fund manager’s assistant, it was in his role as an equities trader from 2006 that Clark received insider information on corporate events such as mergers and acquisitions.

He used this information to place trades using accounts in his own name and that of close family members, in respect of which he had been provided with the account numbers and passwords. The FCA said that the total amount Clark profited from insider trading amounted to £155,161 (€197,441).

Mark Steward, director of enforcement and market oversight at the FCA, said: “Insider dealing is a dishonest crime, not a means for city professionals to make money on the side.

“Mr Clarke abused the trust that came with a city career by cheating the system and, in doing so, he let down the expectations of the whole community. The FCA remains dedicated to stamping out market abuse in all its forms.”

A spokesperson for Schroders said: “Mr Clarke is no longer employed by Schroders, and these proceedings relate entirely to his personal actions. Schroders has not been subject to any investigation, and has provided full co-operation to the FCA throughout this matter. There is no indication of any detrimental impact on our clients or financial results.”

©2016 funds europe