FCA: Ex-Schroders trader imprisoned over insider trading

June 14, AtoZForex One of the core objectives of the Financial Conduct Authority (FCA) is to ensure that the financial markets are functioning well. The regulator strives for the protection of consumers and integrity of the UK financial system as well as for the promotion of effective competition in the interests of consumers.

Yesterday, AtoZForex received a press release from the FCA press Office regarding the latest insider trading case. Ex-Schroders trader imprisoned for two years over the insider trading. Schroders Investment Management is an asset manager operating in 28 countries across Europe, the Americas, Asia and the Middle East.

Damian Clarke’s insider trading

Damian Clarke is a former equities trader at Schroders Investment Management firm. At first, he was employed as an assistant fund manager from 2000 to 2006, in the period from 2006 to 2013 he was serving as an equities trader. As reported by FCA, when working in Schroders Investment Management firm, Mr. Clarke was receiving confidential information on the matter of significant corporate events. Mostly, the events were including the expected public announcements of mergers and acquisitions.

Mr. Clarke was using this information to trade using the accounts on his own or his family members’ names. He had the access to all of the required account numbers and passwords. Damian Clarke has pleaded guilty the following nine counts:

1) Swan Hill Group plc (trading 30 October – 11 November 2003)

2) Marlborough Stirling (trading on 6 January –7 March 2005).

3) Eidos plc (trading on 18 – 21 March 2005).

4) Neutec Pharma plc (trading on 6 June 2006).

5) Retail Decisions plc (trading on 28 – 29 September 2006).

6) Raven Mount Group (trading on 13 – 17 February 2009.

7) BSS Group (trading on 24 – 26 May 2010).

8) Autonomy Corp plc (trading on 18 August 2011).

9) Invensys plc (trading on 28 November 2012).

Mr. Clarke has committed these offenses over the 9-year period from October 2003 to November 2012, while being employed as an equities manager. What is more, his ill-profits from offenses are close to at least £155,161.98.

FCA decided on Mr. Clarke’s imprisonment

FCA has the power to investigate and prosecute insider dealings under the Financial Services and Markets Act 2000, defined by the Criminal Justice Act 1993.

Damian Clarke, who was born on 6th of October 1975, has been sentenced to two years imprisonment yesterday at Southwark Crown Court. Mr. Clarke pleaded guilty to nine counts of insider dealing. Additionally, confiscation proceedings will be conducted against Damian Clarke. The director of enforcement and market oversight, Mark Steward commented:

“This is yet another case involving a city professional caught and jailed for abusing the market that employs him. Insider dealing is increasingly detectable these days and, where detected, more likely to lead to terms of imprisonment and shame rather than glamorous profits and fame.”

As Ex-Schroders trader imprisoned, the judge, Her Honour Judge Korner QC, has mentioned ‘it was no exaggeration when prosecution counsel said in opening that these offenses were pre-meditated, deliberate, and dishonest.' As a note, FCA encourages all the individuals with information about any market abuse to call the FCA’s market abuse hotline on 020 7066 4900.

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