Former equities trader pleads guilty to insider dealing

Damian Clarke, a former equities trader at Schroders Investment Management Limited, pleaded guilty at Southwark Crown Court to nine counts of insider trading. He will be sentenced on 13 June 2016.

Mr Clarke pleaded guilty to seven counts of insider dealing on 24 July 2015, and today (15 March) has pleaded guilty to the remaining two counts.

Mark Steward director of enforcement and market oversight at the FCA said:

“Insider dealing is a dishonest crime, not a means for city professionals to make money on the side. Mr Clarke abused the trust that came with a city career by cheating the system and, in doing so, he let down the expectations of the whole community. The FCA remains dedicated to stamping out market abuse in all its forms.”

Mr Clarke admitted dealing on the basis of inside information he obtained during the course of his employment at Schroders. He was employed initially as a fund manager’s assistant and, from 2006, as an equities trader. In these roles Mr Clarke received inside information about significant corporate events, mainly anticipated public announcements of mergers and acquisitions. He used this information to place trades using accounts in his own name and that of close family members, in respect of which he had been provided with the account numbers and passwords. The total profits made from Mr Clarke’s insider dealing amount to at least £155,161.98.

Notes to editors

1. The case was heard at Southwark Crown Court
2. Clarke's date of birth: 6 October 1975
3. The nine counts that Mr Clarke has pleaded guilty to are as follows:
   
   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).
4. The FCA, and previously the Financial Services Authority, have secured 27 convictions in relation to insider dealing: Christopher McQuoid and James William Melbourne in March 2009; Matthew and Neel Uberoi in November 2009, Malcolm Calvert on 11 March 2010, Anjam Ahmad on 22 June 2010, Neil Rollins on 21 January 2011, Christian Littlewood and Angie Littlewood on 8 October 2010 and Helmy Omar Sa'aid on 10 January 2011, Rupinder Sidhu on 15 December, and James and Miranda Sanders together with another individual in May 2012 and Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah and Truptesh Patel on 27 July 2012, Thomas Ammann on 13 December 2012, Paul Milsom on 7 March 2013, Richard Joseph on 11 March 2013 and Graeme Shelley on 27 March 2014, Julian Rifat on 7 November 2014, Ryan Willmott on the 26 February 2015 and Paul Coyle on the 3 March 2015.
5. The Financial Services and Markets Act 2000 gives the FCA powers to investigate and prosecute insider dealing, defined by The Criminal Justice Act 1993.
6. Individuals with information about market abuse can call the FCA’s market abuse hotline on 020 7066 4900.
7. On the 1 April 2013 the Financial Conduct Authority (FCA) became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
8. The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
9. Find out more information about the FCA.