Crispin Odey: Hedge fund millionaire banned by City watchdog

The UK's Financial Conduct Authority (FCA) has provisionally banned millionaire fund manager Crispin Odey from working in financial services and imposed a fine of £1.8 million, citing his "lack of integrity." The regulator stated that Mr. Odey attempted to "obstruct" the disciplinary investigation into allegations of sexual harassment against him, and his conduct demonstrates that he is "not a fit and proper person to perform any function related to regulated activities." This action underscores the FCA's commitment to maintaining ethical standards within the financial industry.

According to the Financial Times, the allegations of misconduct against Mr. Odey—which he strongly denies—involve claims from 13 women over the past 25 years. Mr. Odey has filed a libel suit against the newspaper. Odey Asset Management (OAM), the hedge fund founded by Mr. Odey, has now been dissolved, and he is challenging the FCA's provisional decision, indicating a potentially lengthy legal battle ahead.

The regulator stated in its findings that Mr. Odey "deliberately sought to obstruct OAM's disciplinary process in respect of his conduct in order to protect his own interests." It is understood that weeks before a disciplinary hearing he was due to attend in January 2022, Mr. Odey used his majority stake in OAM to remove the existing members of the executive committee. This move effectively gave him greater control over the disciplinary proceedings.

Subsequently, he appointed himself as the sole member of the committee and decided to postpone the disciplinary hearing into his conduct indefinitely, claiming he could not conduct the hearing impartially. Therese Chambers, joint executive director of enforcement and market oversight at the FCA, stated: "A culture of silence that allows misconduct to go unchecked is a risk to consumers and markets." The FCA's stance highlights the importance of accountability and transparency within financial institutions.

Chambers added: "Mr. Odey's repeated attempts to evade and obstruct accountability efforts justify a ban from the industry. His lack of integrity means he is not fit and proper." Since the Financial Times conducted its broader investigation, OAM has struggled to rebuild investor trust, and many major banks have severed ties with the firm. The hedge fund is currently in the process of being dissolved, with its business being transferred to other companies, marking a significant downfall for the once-prominent firm.