Mark Lyttleton, former manager of the BlackRock UK Dynamic and UK Absolute Alpha funds, was arrested last month on suspicion of insider trading, according to reports from Sky News.
Lyttleton, who left the firm after 21 years of service at the end March following a restructure, was allegedly detained by the City of London Police as part of a market abuse probe launched by the Financial Conduct Authority.
A statement from BlackRock reads: “On Tuesday 30th April, an individual, who previously worked at BlackRock, was arrested by the City of London Police on suspicion of insider dealing. The FCA has informed us that the allegations relate to actions carried out for personal gain, while off our premises, and that neither BlackRock, nor any other employee, is under investigation.
“There is no suggestion that there has been any impact to any of BlackRock’s clients. The alleged behaviour is totally contrary to the firm’s principles and values. BlackRock strongly supports aggressive enforcement of the law in these matters. The firm has been aiding and will continue to aid the authorities with their investigations.”
On 3 May, the FCA announced it, with the assistance of the City of London Police Economic Crime Directorate, executed a search warrant in West London on 30 April. Two people, a man aged 41 and a woman aged 37, were arrested and questioned in connection with an investigation into insider dealing and market abuse.
Both Sky News and Bloomberg have reported that Lyttleton, along with an unidentified woman, were subject to this arrest.
The FCA statement reads: “No further details can be confirmed at this time and no individuals have been charged. The arrests are not linked to any other ongoing insider dealing investigation.”
Business and private premises in Switzerland were also searched by the Swiss authorities in connection with the FCA’s investigation, the authority added.
Insider dealing is a criminal offence that is punishable by a fine or up to seven years imprisonment.
Money Marketing was unable to reach Lyttleton at the time of publication.