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Britain’s monetary watchdog will ban Crispin Odey from the sector and nice the hedge fund founder £1.8mn for a “lack of integrity” in his conduct after he confronted allegations of sexual harassment and assault.
Odey, who based Odey Asset Administration, “intentionally sought to frustrate OAM’s disciplinary processes into his conduct to guard his personal pursuits”, the Monetary Conduct Authority mentioned on Monday.
Odey fell from grace after the Monetary Occasions detailed allegations of sexual harassment and assault in opposition to him over a interval of a few years. He has strenuously disputed the allegations.
Odey will problem the FCA’s determination, which is provisional, by referring it to the Higher Tribunal, a superior courtroom of report that has equal standing to the Excessive Courtroom.
The watchdog’s motion was not based mostly on the sexual harassment accusations in opposition to Odey themselves, however on his alleged makes an attempt to frustrate the hedge fund’s efforts to deal with complaints about his behaviour and convey disciplinary proceedings in opposition to him.
The FCA mentioned the hedge fund government “demonstrated that he’s not a match and correct individual to carry out any perform associated to regulated actions” after he “confirmed reckless disregard” for his firm’s governance and triggered it to breach regulatory necessities.
Odey didn’t reply to a request for remark.
The hedge fund boss twice fired all of OAM’s government committee after they deliberate disciplinary hearings about his behaviour, making the most of his majority shareholding within the enterprise to switch them with himself, the FCA mentioned.
After changing the executives for the primary time, Odey “indefinitely postponed” a disciplinary listening to into his conduct, saying he was “unable to conduct it with impartiality”, the FCA mentioned, including that his behaviour in direction of the fund and the regulator “lacked candour”.
“A tradition of silence wherein allegations of misconduct will not be handled successfully can put shoppers and markets in danger,” mentioned Therese Chambers, joint government director of enforcement and market oversight on the FCA.
“Odey repeatedly sought to evade and impede efforts to carry him to account,” mentioned Chambers. “His lack of integrity means he deserves to be banned from the business.”
Odey is at current combating a private harm declare in a civil courtroom filed by 5 of his alleged victims. He’s contesting the claims and has additionally issued a libel declare in opposition to the Monetary Occasions, which the FT is defending.
The hedge fund founder has not been authorised by the FCA to hold out any regulated monetary companies exercise since 2023, whereas his agency had its authorisation eliminated final 12 months.
