Morgan Grenfell calls in Slaughters

Slaughter and May is advising Morgan Grenfell Asset Management, which is investigating the activities of two of its fund managers suspended last week.

Morgan Grenfell, part of Deutsche Bank, suspended the managers after inquiries by City regulator, the Investment Management Regulatory Organisation (IMRO).

IMRO's inquiries concern the valuation of unlisted securities in the Scandinavian market which were bought by Peter Young, one of the suspended fund managers.

Young was responsible for the unit trust Morgan Grenfell European Growth Trust.

Morgan Grenfell and the Royal Bank of Scotland, trustee of two out of three Morgan Grenfell funds where dealings were temporarily suspended, have filed a High Court writ seeking to freeze the assets of Young. Macfarlanes is advising the Royal Bank of Scotland.

None of the investors in the unit trusts, which have now resumed trading, are thought to be at risk because parent company Deutsche Bank has stepped in to absorb any risk.

The second fund manager suspended last week was Stewart Armer.

Slaughter and May confirmed that it was representing Morgan Grenfell but declined to comment.