FRANCE - Jean-Pierre Mustier, the current head of asset management at Société Générale, has agreed to step down from his role by the end of the year after the Financial Markets Authority (AMF) named him in an insider trading probe.
SocGen said it has received letters of grievance opening proceedings from France's financial regulator's Sanctions Commission naming Mustier - - and Robert Day, a non-executive director, concerning insider trading related to financial information and the market of SocGen shares. (See earlier IPE story: Shake-up changes SGAM head)
No further information has been given and the firm said this brings to an end the investigation started by authorities in January 2008, sparked by rogue trader Jerome Kerviel. http://www.ipe.com/news/rogue-trader-loses-socgen-4-9bn_26860.php
Both individuals deny any wrongdoing regarding the insider trading allegations but Mustier has tendered his resignation and agreed to leave once the SGAM/CAAM merger is complete, by 31 December at the latest.
SocGen said in a statement it wished to "pay tribute to Jean Pierre-Mustier's commitments over the past 22 years" at the firm.
He moved from head of investment banking services last year to become head of both divisions last year as head of Global Investment Management and Services (GIMS) and head of SG Asset Management.
This latest revelation is likely to be a further blow to the company as it lost its chief executive Daniel Bouton when the Kerome scandal exposed SocGen's weaknesses in risk monitoring.
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