The UK’s Financial Conduct Authority (FCA) has imposed a £1.8 million fine on hedge fund manager Crispin Odey and banned him from working in the financial services industry, citing a “lack of integrity.”
The Financial Conduct Authority asserted that Crispin Odey “deliberately sought to frustrate” the disciplinary proceedings at his hedge fund, Odey Asset Management LLP (OAM), “to protect his own interests” after facing allegations of sexual harassment.
The FCA’s ruling remains provisional, as Odey has referred the matter to the Upper Tribunal, where both sides will present their cases.
The watchdog accused Odey of showing “reckless disregard” for OAM’s governance and breaching regulatory standards.
The FCA said Odey’s conduct demonstrated that he is “not a fit and proper person” to perform any function related to regulated activities.
The case stems from a disciplinary hearing scheduled for January 2022, which was set to address allegations of misconduct against Odey.
However, weeks before the hearing, Odey used his majority stake in the firm to remove the members of OAM’s executive committee and appoint himself as the sole member.
This move allowed him to indefinitely postpone the hearing, claiming he could not oversee it impartially.
Sexual misconduct allegations Crispin Odey and industry fallout
The FCA’s decision follows a wave of allegations against Odey published by the Financial Times and Tortoise Media in 2023.
The reports detailed accusations from 20 women who claimed Odey sexually harassed or assaulted them over several decades.
The scandal triggered a swift backlash from the financial community, with major banks cutting ties with OAM. By October 2023, the hedge fund announced its closure.
Odey has consistently denied the allegations and has since filed a libel lawsuit against the Financial Times, seeking £79 million in damages.
He claims the newspaper’s reporting was false and damaging to his reputation. The FT, however, has stated it will “vigorously defend” its work.
In addition to the FCA’s action, five women have launched separate legal proceedings against Odey over alleged misconduct between 1995 and 2023.
FCA warns against “culture of silence”
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said the case highlights the dangers of corporate leaders abusing their power to avoid accountability.
“A culture of silence in which allegations of misconduct are not dealt with effectively can put consumers and markets at risk. 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,” Chambers stated.
The FCA’s decision marks a significant moment in the UK’s efforts to crack down on misconduct in the financial sector.
However, with Odey’s appeal pending before the Upper Tribunal, the final outcome remains uncertain.
Odey, who founded OAM in 1991 and became one of the UK’s most high-profile hedge fund managers, now faces not only regulatory punishment but also mounting legal challenges that could further damage his reputation and career.
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