MPs demand answers from watchdog over Crispin Odey’s handling of sexual harassment allegations
MPs have written to the UK’s financial watchdog demanding answers over the handling of sexual harassment allegations against hedge fund manager Crispin Odey.
Conservative MP Harriett Baldwin, chair of the House of Commons Treasury Select Committee, has asked the head of the Financial Conduct Authority Nikhil Rathi to clarify what the regulator knew and whether it had taken any action against Odey or its asset manager over allegations of misconduct.
The letter asked for more details on systems put in place by the regulator to deal with allegations of what it called “non-financial misconduct” and whether it monitored the “cultural impact” owners could have on their businesses , even if they have no formal management. position.
It followed a report in the Financial Times last week that alleged Odey had sexually assaulted 13 women over a 25-year period. He denies the claims.
“The culture of the financial services industry and women’s experiences are ongoing concerns of the committee.
In the firing line: Hedge fund boss Crispin Odey (pictured) allegedly sexually harassed 13 women over a 25-year period
Financial Times journalists have shed light on highly disturbing allegations of conduct related to the actions of a powerful individual.
We look forward to a response from the financial regulator on these issues,” Baldwin said.
The scandal saw Odey Asset Management kick out its 64-year-old founder over the weekend, block withdrawals from two funds and close another as it struggled to contain the fallout.
The company said Odey “will no longer have any economic or personal involvement” and it will change the name of the company.
But as investors scrambled to raise money, the company closed the Brook Developed Markets fund and the LF Brook Afternoon fund. The Swan fund has been suspended and the portfolio will be liquidated.
Other companies have distanced themselves from the fallen fund manager.
US bank JP Morgan has ended the relationship, meaning all major banks – including Morgan Stanley, Goldman Sachs and Exane – have cut ties with Odey Asset Management since the scandal erupted.
Discussions are ongoing as to whether the three banks – the company’s prime brokers – can be lured back. Internally, there is hope that management changes announced by the company will help restore its reputation.
The fund has £3.5bn of assets under management – £1bn in funds formerly managed by Odey, who still has £600m of his own money in the funds, which have now been acquired by other asset managers.
Odey has said he was the victim of an “aggressive campaign” and massaged a colleague’s back, but said it was “not a criminal offence”.
He compared himself to Tesco chairman John Allan, who had to resign after four women made allegations about his behaviour.