Schroders equity trader arrested in insider-trading probe

Damian Clarke, an equity trader at Schroders PLC, was among two men and three women arrested by the U.K.’s Financial Services Authority as part of an insider-trading probe, according to a person familiar with the investigation.

Mr. Clarke has worked at Schroder Investment Management since 2003, according to the FSA Register of regulated individuals.

The FSA searched four locations in London and the north of England, the regulator said in an e-mailed statement Tuesday.

“The FSA has informed us that the allegations relate entirely to this individual’s personal actions,” Schroders said in an e-mailed statement, which didn’t identify Mr. Clarke. “There is no indication of any detrimental impact on our clients or financial results.”

The suspects are being questioned in custody, the FSA said. Mr. Clarke wasn’t available to take a call at his office at Schroders in London.

The arrests come as the FSA scored a conviction in its biggest insider-trading case. Paul Milsom, the former Legal & General Group equities trader, pleaded guilty last week to passing inside information to an independent stockbroker.