Crispin Odey faces City ban and unlimited fine in watchdog investigation

Disgraced Crispin Odey faces an unlimited fine and possible city ban after a watchdog investigation into his handling of sexual misconduct allegations.

The Financial Conduct Authority (FCA) said the hedge fund tycoon had deliberately attempted to thwart an investigation into his conduct by executives at his company Odey Asset Management following a wave of sexual harassment allegations by more than one dozen women

On Christmas Eve 2021, Odey, 65, used his powers as a majority shareholder to fire the company’s entire executive management committee, less than two weeks before he faced a disciplinary hearing.

After appointing himself as the sole member of the committee, Odey postponed the investigation indefinitely, claiming that he would be “incapable of carrying it out impartially.”

He then made a similar move in March 2022, unilaterally dismissing the committee’s replacement members. He again named himself as the sole member amid disagreement over the hearing, which was finally held in November after a second reshuffle.

In a warning notice published yesterday, the FCA said Odey had shown “reckless disregard” for the firm’s governance processes and had used “inappropriate means to protect his own interests”.

The regulator added that the fund manager’s conduct in addressing its investigations demonstrated 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 from working in the city or a public reprimand. Odey has been contacted for comment.

The regulator’s decision is not final and Odey can challenge it.

But the FCA’s damning assessment is another blow to the fund manager’s damaged reputation.

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 that occurred between 1998 and 2021 involving 13 women who had worked for Odey Asset Management or had professional dealings with Odey.

The claims led major clients, including banks such as JP Morgan, to withdraw money from the funds.

The company, founded by Odey in 1991, ultimately decided to close the business and move its funds and managers elsewhere.

In June, it was revealed that Odey had taken a £37m hit over the process.

The FCA announcement comes as Odey faces a personal injury lawsuit brought by five of his alleged victims in civil court.