Investment platforms put to the test by regulators as they continue to offer Odey funds to clients
Investment platforms such as AJ Bell, Hargreaves Lansdown and Halifax are being tested as they offer funds from Odey Asset Management despite the company’s crisis.
The Financial Conduct Authority (FCA) has contacted the companies about their offerings under the name Odey and under Brook – the name given to funds managed by other hedge fund partners.
The watchdog has asked them to explain how this is in the best interest of the clients given the problems at Odey Asset Management and is questioning them about the level of buying and selling of Odey funds.
Allegations: Founder of Odey Asset Management, Crispin Odey (pictured) has been accused of sexual misconduct by 13 women
It also looks at the transfer of funds sold by the hedge fund to third parties, according to the Financial Times.
Odey Asset Management has been in crisis since allegations of sexual misconduct against founder Crispin Odey by 13 women led to a surge in client withdrawals.
It managed around £3.5bn in assets before the scandal and has said it was in ‘advanced talks’ to split itself up and transfer money and staff to rivals.
Investment platforms like AJ Bell allow do-it-yourselfers to choose which funds to invest in.
While they may limit funds, it is usually an exceptional move.