(May 14, 2013) – One of BlackRock’s best known European fund managers was reportedly arrested and detained by police on suspicion of insider dealing last month.
It is widely understood that Mark Lyttleton is the fund manager in question. Prior to leaving BlackRock in March, Lyttleton oversaw the firm’s UK Dynamic and BlackRock UK Absolute Alpha funds.
Lyttleton, who gave more than two decades of service to BlackRock, is one of the biggest names targeted since the UK’s financial regulator started its push to bring more financial sector employees to task in the aftermath of the banking crisis.
BlackRock did not confirm Lyttleton’s identity, but issued aiCIO with the following statement: “On Tuesday 30 April, an individual, who previously worked at BlackRock, was arrested by the City of London Police on suspicion of insider dealing.
“The Financial Conduct Authority (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 behavior 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.”
Business and private premises in Switzerland were also searched by the Swiss authorities in connection with the FCA’s investigation. An unidentified woman was also arrested as part of the same investigation.
The FCA declined to confirm Lyttleton’s identity, but stressed in a statement that no individuals have currently been charged, and that the arrest of the man and the woman were not linked to any other ongoing insider dealing investigation.
These investigations include a probe in which three people were arrested in February, including an employee of Man Group’s GLG, and two from Lodestone Natural Resources, including its founding partner.