March 5 (Bloomberg) -- Charles Stanley Group Plc, a London-based wealth manager and brokerage, said a former employee was arrested on suspicion of fraud.
“This individual was responsible for defrauding clients and non-clients,” Magnus Wheatley, a spokesman for the firm, said in an e-mailed statement. “The conduct concerns transactions undertaken by the individual almost entirely outside of Charles Stanley’s systems and it is believed to have affected only a small number of clients. We are aware that the individual has now been arrested by the police.”
The firm reported the broker, who retired on Aug. 3, to the police and Financial Services Authority and is now assisting authorities with their inquiries, Wheatley said. He declined to identify the former employee. While the amount of money involved is still being assessed, the financial impact on the London-based company is likely to be “minimal,” Wheatley said.
Charles Stanley, which oversees more than 16 billion pounds ($24 billion) for clients, said an internal review had concluded that the firm’s processes and procedures weren’t at fault. The investigation was previously reported by thewealthnet, a London-based publication.
Charles Stanley shares have advanced 21 percent to 364 pence in London trading this year, valuing the company at 165 million pounds.
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