Crispin Odey faces a city ban and an unlimited fine in the watchdog investigation
Research: Crispin Odey
Disgraced Crispin Odey is facing an unlimited fine and possible ban from the city after a watchdog investigated his handling of sexual misconduct allegations.
The Financial Conduct Authority (FCA) said the hedge fund magnate had deliberately tried to frustrate an investigation into his conduct by executives at his firm Odey Asset Management following a wave of sexual harassment claims by more than a dozen women.
On Christmas Eve 2021, Odey, 65, used his powers as majority shareholder to fire the company’s entire executive management committee, less than two weeks before he was to face a disciplinary hearing.
After subsequently appointing himself sole member of the commission, Odey postponed the investigation indefinitely, claiming that he would be “unable to conduct it impartially.”
He then took a similar action in March 2022, unilaterally dismissing the committee’s replacement members. He reappointed himself as sole member amid a disagreement over the hearing, which was eventually held in November after a second reshuffle.
In a warning published yesterday, the FCA said Odey had shown a ‘reckless disregard’ for the firm’s governance processes and had ‘used inappropriate means to protect his own interests’.
The regulator added that the fund manager’s conduct in handling its investigations showed that Odey ‘lacks integrity’.
As a result, the FCA said it proposed taking action against the tycoon, which could result in an unlimited fine, a ban from working in the city or a public reprimand. Odey was contacted for comment.
The regulator’s decision is not final and Odey can challenge the decision.
But the FCA’s damning assessment is a further blow to the fund manager’s damaged reputation.
His empire began to collapse last year after the publication of allegations of sexual harassment and misconduct against him, which he denies.
They related to alleged incidents between 1998 and 2021 involving thirteen women who had worked for Odey Asset Management or were professionally associated with Odey.
The claims led to major clients, including banks such as JP Morgan, withdrawing money from the funds.
The company, which Odey founded in 1991, eventually decided to wind down the business and move its funds and managers elsewhere.
In June it was revealed that Odey had taken a £37 million hit from the lawsuit.
The FCA announcement comes as Odey faces a personal injury claim filed in the civil court by five of his alleged victims.
DIY INVESTMENT PLATFORMS
A.J. Bell
A.J. Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund trading and investment ideas
interactive investor
interactive investor
Invest for a fixed amount from € 4.99 per month
Sax
Sax
Get £200 back in trading fees
Trade 212
Trade 212
Free trading and no account fees
Affiliate links: If you purchase a product, This is Money may earn a commission. These deals have been chosen by our editors because we believe they are worth highlighting. This does not affect our editorial independence.