Crispin Odey banned from financial industry
Former hedge fund manager Crispin Odey has been fined £1.8m and banned from working in the financial services industry by the Financial Conduct Authority.
The financial watchdog cited Odey’s “lack of integrity” in their decision after he attempted to escape the allegations of sexual assault he faced at his firm.
Odey “deliberately sought to frustrate” the disciplinary processes of his hedge fund, the FCA said, and showed “reckless disregard” for its governance, causing it to breach certain regulatory requirements.
“The FCA considers Mr Odey’s conduct demonstrated that he is not a fit and proper person to perform any function related to regulated activities,” it added.
Regulators revealed that Odey’s firm had given him a final written warning in 2021 over his inappropriate behaviour and scheduled a disciplinary hearing to consider whether he had breached it.
However, the hedge fund manager used his majority shareholding in the company to remove the firm’s executive committee members and appoint himself sole member, then indefinitely postponed the hearing.
The next week, Odey reappointed members to the executive committee, but three months later, he was facing disagreement over how to proceed with the disciplinary hearing and again removed all other members and appointed himself the sole member.
“A culture of silence in which allegations of misconduct are not dealt with effectively can put consumers and markets at risk,” said Therese Chambers, joint executive director of enforcement and market oversight at the FCA.
“Mr Odey repeatedly sought to evade and obstruct efforts to hold him to account. His lack of integrity means he deserves to be banned from the industry.”
Odey Asset Management
Odey Asset Management, named after the eponymous founder, was rocked by scandal in 2023 after a Financial Times investigation revealed more than a dozen women had accused the manager of sexual assault.
While there had been previous accusations of sexual assault against Odey, the FT investigation cited 13 women who accused him of abuse or harassment. He has denied the claims and called them “rubbish”.
In December, it was revealed that Odey was seeking at least £79m in damages from the FT after suing the publication for libel.
Odey AM began winding down its business in October 2023 and applied to cancel its FCA authorisation.
In June 2023, Odey was removed as a person with significant control of the hedge fund and stripped of his portfolio management responsibilities.
He was then rehired to the firm in September 2024, while almost a dozen partners officially resigned, leaving Odey as the sole director.
Pay among partners at Odey AM in the year to April 2024 plummeted 99.9 per cent from the year before, falling to just £49,000.
“The FCA is seeking to fine, ban and shame Crispin Odey for the way he ran his business rather than his alleged sexual predatory conduct towards employees,” says Simon Morris, a financial services partner with law firm CMS.
“This shows how failure to follow proper procedures enables the FCA to take serious disciplinary action. It also demonstrates how the FCA can usually find grounds to act against someone whose conduct it finds unacceptable.”