The SFO said the pair had been arrested after it conducted raids with officers from the City of London Police on properties in Surrey and Kent.
Weavering Capital primary fund, the Weavering Macro Fixed Income Fund, was an offshore entity incorporated in the Cayman Islands. The firm was placed in administration in March after a review by PricewaterhouseCoopers found that the fund's balance sheet was "almost entirely dependent" on a $637 million interest rate swaps deal with an offshore company established by the company's founder and chief executive.
PwC said that company lacked the value necessary to support the transactions and that creditors and shareholders faced a "substantial shortfall".
In its statement, the SFO said its investigation is focused on the interest rate swap transactions between the fund and the offshore firm, which it said "appears to be a related third party and which inflated the apparent net asset value of the macro fund".