City watchdog restricts Crispin Odey and colleagues’ transactions
City watchdog limits ability of Crispin Odey and colleagues to access their own money as crisis deepens amid allegations of misconduct
- Odey AM and WM must be authorized for transactions, with exceptions
- The group halted withdrawals from four funds last week amid an investor exodus
The city regulator has limited the ability of Crispin Odey and colleagues to transact with his fund company’s assets.
The regulator has told Odey Asset Management and Odey Wealth Management that they must obtain written approval before engaging in any transaction that “could in any way dispose of, withdraw, transfer, trade in or reduce the value of their assets.”
This includes cash invested in the companies belonging to “controllers, members, officers or employees,” the FCA said.
Crispin Odey denies the allegations against him in the Financial Times
However, other investors in the firms’ funds may continue to instruct Odey personnel to make withdrawals on their behalf, which falls under the “in the ordinary course of business” payment exceptions.
The companies will also be forced to provide the FCA with weekly updates of their bank accounts and their balances.
It is the latest setback for Odey AM, which has been reeling after allegations of sexual misconduct and assault revealed by the Financial Times.
Odey AM suspended four fund withdrawals last week to stem an investor exodus following the allegations.
Several major banks — including JP Morgan, Goldman Sachs and UBS — have cut ties with the company as prime brokers and custodians.
Prime brokers provide hedge funds loans and other services, while custodians protect clients’ funds.
Mr Odey, who denies the allegations, was forced out by partners and the company has announced it is in ‘advanced talks’ to part ways and transfer money and staff to rivals.
But Mr Odey reportedly still has £600m of his own money split between five funds, which have been taken over by other investment managers and will be part of this switch to other funds.
The restrictions of the FCA will apply to Odey AM from June 17 and June 18 for the asset management division.
Other exceptions to the restrictions include payments of salaries and those to suppliers, and transactions of less than £20,000 ‘in the ordinary course of business’.
The FCA said: ‘The company may not, except in the ordinary course of business, or without the prior written consent of the Authority, dispose of, withdraw, transfer, trade in or diminish the value of its own assets in any way. .’
Odey AM declined to comment.