UPDATE 2-Schroders trader among five arrested in Britain

* Arrests made on suspicion of insider dealing

* Schroders says not subject to any investigation

* No impact on clients, results - Schroders

LONDON, Jan 22 (Reuters) - British police and regulators have arrested a London trader at asset manager Schroders along with another man and three women in its latest investigation into insider dealing, as part of a crackdown on market abuse.

The Financial Services Authority (FSA) said on Tuesday two men, aged 37 and 62, and three women, aged 39, 51 and 63, were in custody and awaiting questioning by police. Four properties were searched in London, the east midlands and north of England.

Schroders confirmed that one employee had been arrested and had been suspended with immediate effect.

"The FSA has informed us that the allegations relate entirely to this individual's personal actions," a spokeswoman said. "Schroders is not subject to any investigation. There is no indication of any detrimental impact on our clients or financial results."

The FSA said the arrests were not linked to any other ongoing insider dealing investigation.

Britain's top financial regulator is currently prosecuting six other individuals for insider dealing and has so far secured 21 convictions for the offence, which can carry a jail sentence of up to seven years.