View more on these topics

Ex-BlackRock star manager faces insider trading charges

Mark-Lyttleton-500x320.jpg

The FCA has launched criminal proceedings against former BlackRock portfolio manager Mark Lyttleton for insider trading.

Lyttleton is charged with three counts of insider dealing between 2 October 2011 and 16 December 2011.

The offence is punishable by a fine or up to seven years imprisonment.

Formerly a star manager, Lyttleton ran the BlackRock UK Absolute Alpha fund from its launch in April 2005 until April 2013, at one point managing £2bn in assets.

He was arrested on April 30 2013 on suspicion of insider trading, having stepped down from his role at BlackRock. The UK Absolute Alpha fund had suffered five years of underperformance relative to its sector prior to this, with gains of just 0.1 per cent, according to Hargreaves Lansdown.

Nigel Ridge was appointed co-manager of the fund in April 2013, joining Nick Osborne, who has been a co-manager since January 2008. The fund now has £283m in assets under management.

A spokesperson for BlackRock says: “The FCA has informed us that the charges against a former employee relate to alleged actions carried out in 2011 for his personal gain, while off our premises, and that neither BlackRock, nor any employee, was under investigation.

“There was no impact to any of BlackRock’s clients as a result of the alleged actions. The alleged behaviour is totally contrary to the firm’s principles and values, and we strongly support aggressive enforcement of the law in these matters. As charges have now been brought we will not be able to make any further comment.”

Recommended

PRA admits lack of long-term planning on Brexit

The Prudential Regulation Authority has not carried out any contingency planning over the long-term effects of Brexit. Following a Freedom of Information request to the regulator, the PRA says it had conducted “significant contingency planning” for any market volatility that could have happened before, during, or in the immediate aftermath of the UK’s vote to […]

FCA logo new 3 620x430
21

FCA: Banks could help advise less ‘savvy’ customers 

Banks could give unbiased advice to help less “savvy” customers, according to FCA research. In a research paper published last week, the regulator looked at how particular groups of consumers are affected by price discrimination in financial services. It examines firms charging different prices to different individuals, resulting in some groups paying high mark-ups and cross-subsidising […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment