Investigation: Crispin Odey
Disgraced Crispin Odey faces an unlimited fine and a possible ban from the City after a watchdog’s probe into his handling of sexual misconduct allegations.
The Financial Conduct Authority (FCA) said the hedge fund tycoon had deliberately tried to frustrate an investigation into his conduct by executives at his company 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 firm’s entire executive management committee less than two weeks before he was set to face a disciplinary hearing.
After then appointing himself as the committee’s sole member, Odey postponed the investigation indefinitely, claiming that he would be ‘unable to conduct it with impartiality’.
He then performed a similar move in March 2022, unilaterally firing the replacement members of the committee. He again appointed himself the sole member amid a disagreement over the hearing, which was eventually held that November after a second reshuffle.
In a warning notice published yesterday, the FCA said Odey had shown a ‘reckless disregard’ for the company’s governance processes and had used ‘improper means to protect his own interests’.
The regulator added that the fund manager’s conduct when dealing with its inquiries showed that Odey ‘lacks integrity.’
As a result, the FCA said it was proposing to take action against the tycoon, which could result in an unlimited fine as well as a ban on 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 another blow to the damaged reputation of the fund manager.
His empire began to collapse last year following the publication of allegations of sexual harassment and misconduct against him, which he denies.
They related to alleged incidents between 1998 and 2021 involving 13 women who had either worked for Odey Asset Management or had professional dealings with Odey.
The claims led to major clients, including banks such as JP Morgan, pulling money from the funds.
The company, which Odey founded in 1991, eventually decided to wind down the business and shift its funds and managers elsewhere.
In June, it was revealed that Odey had taken a £37m hit from the process.
The FCA announcement comes as Odey faces a personal injury claim filed by five of his alleged victims in civil court.
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