Shares in Gartmore fell almost 4% on Monday amid continuing speculation about links between star fund manager Roger Guy and a broker caught up in an FSA insider dealing investigation.
Despite denials of any wrongdoing shares in Gartmore have fallen more than 10% over the past week amid fevered City speculation about links between Guy, a Gartmore fund manager and Clive Roberts, head of equities at Exane BNP Paribas, The Telegraph reports.
A spokesman for Gartmore categorically denied any wrongdoing by staff. "No one from Gartmore is involved in the investigation," he said.
Guy manages more than 20% of Gartmore's £21bn investments, alongside Guillaume Rambourg, his co-manager. The pair account for about 40% of group revenues, including performance fees.
Gartmore shares have fallen sharply since they floated at 220p in December, closing down 7p at 169p yesterday. The FTSE 100 has risen 7% over the same period.
Seven men were arrested last week as part of the FSA investigation into insider trading. The investigation is the largest ever by the UK market regulator.
Leading City banks BNP Paribas and Deutsche Bank, as well as US hedge fund Moore Capital and boutique London broker Novum Securities, have all been drawn into the investigation. All are co-operating with the authorities.
Charges could be brought as early as this week.
SLI chief has 'serious reservations' over Daniels' £6.2m deal
One of the City's biggest institutional investors has said that it has "serious reservations" about the way in which the £6.2m pay packet of Eric Daniels, chief executive of Lloyds Banking Group, has been structured.
Keith Skeoch, chief executive of Standard Life Investments, revealed his concerns in a letter to Lord Myners, the City Minister, The Times reports.
He was disappointed by the linking of top executives' pay at Lloyds and Royal Bank of Scotland to share price performance - an indicator over which management has limited control.
"We have serious reservations about the use of share price targets for long-term incentives," he wrote, adding that UK Financial Investments, the body that owns the taxpayer's stakes in Lloyds and RBS, "does not share such reservations".
Daniels will receive a pay package of £6.2m if the Lloyds share price rises to 114p from the present 63p.
Skeoch said that share price targets in bonus schemes "may motivate behaviours, such as seeking to maximise the share price in an unsustainable manner, that are not consistent with [shareholders'] long-term interests".
The forces at play in investment - most obviously, regulatory change, uncertain markets and shifting demographics - are as strong today as they were when Professional Adviser launched its sister magazine Multi-Asset Review in 2017.
Regulator has visited some firms already
Platforms react to Fidelity blocking Income Focus purchases
Chris Hill's letter to Treasury
Cash balance surges