The FSA has ordered Threadneedle to carry out a review of its systems and controls after a suspected rogue trade, according to reports.
The Daily Telegraph says the FSA issued the asset manager with a Section 166 order after the group contacted the authorities about a trade it had blocked last year.
A Section 166 order requires a company to submit third-party reports on internal processes to the FSA.
Earlier this week, Threadneedle said: “In August 2011, our systems stopped a suspicious attempted trade.
“The matter was immediately reported to the authorities and the individual involved was subsequently dismissed.”
No client money was lost in the alleged incident, which the newspaper claims involved up to one billion Argentine warrants.
City of London Police have confirmed that a 32-year-old man has been arrested and they are investigating the individual. He is believed to be a junior trader formerly with Threadneedle’s investment arm.
Threadneedle declined to comment on the Section 166 order, although a spokesperson clarified: “We are not under investigation.”