Regulators and police have arrested two men and three women as part of an investigation into insider dealing and market abuse.
The Financial Services Authority (FSA) said the men, aged 37 and 62, and women, aged 39, 51 and 63, were in custody and awaiting questioning by police.
It searched four properties in London, Lincolnshire, Leicestershire and North Yorkshire.
It said the person had been immediately suspended, but stressed the company was not involved in the investigation.
"The FSA has informed us that the allegations relate entirely to this individual's personal actions," it said in a statement.
"Schroders is not subject to any investigation. There is no indication of any detrimental impact on our clients or financial results."
The arrests come as part of a crackdown by the FSA on insider dealing.
The financial regulator is in the process of prosecuting six others in relation to the offence, which can carry a prison sentence of up to seven years.
It has secured 21 convictions to date - most recently that of Thomas Amman, an former investment banker at Mizuho International, who was sentenced to over two years in prison in December.
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