Former Threadneedle trader investigated in fraud inquiry

The City of London Police are investigating a suspected $150 million trading fraud attempted by a former trader at , the fund manager.

Threadneedle, whose UK Equity Income fund is a Citywire Selection recommendation, has confirmed that police and other authorities had been notified after internal company controls were triggered and a suspicious trade was stopped from being carried out last August.

According to the Financial Times the trade was allegedly linked to Argentine warrants. A warrant is a financial agreement that gives the holder the right to buy an investment at a specific price within a specified period.

Threadneedle said: ‘In August 2011, our systems stopped a suspicious attempted trade. The matter was immediately reported to the authorities and the individual involved was subsequently dismissed.’

Threadneedle stressed no client money had been lost as the trade did not proceed.