Odey Faces ‘Fit and Proper’ Test as UK Watchdog Contacts Police

The UK’s financial regulator said it’s in contact with the police about allegations of sexual assault against Crispin Odey as it investigates whether the hedge fund manager passes its ‘fit and proper’ test to operate in the financial industry.

(Bloomberg) — The UK’s financial regulator said it’s in contact with the police about allegations of sexual assault against Crispin Odey as it investigates whether the hedge fund manager passes its ‘fit and proper’ test to operate in the financial industry. 

The Financial Conduct Authority said that as some of the allegations are “potentially criminal” it has been in touch with the police, the regulator said in a July 3 letter to UK lawmakers. The FCA is focusing on allegations that Odey dismissed the executive committee at Odey Asset Management for “an improper purpose” and said its enforcement arm is leading the investigation.

@tommackenzietv asks Sarah Pritchard from the Financial Conduct Authority why it’s “taken so long” https://t.co/qee9hKfKcm pic.twitter.com/N2jlKJK0K4

— Bloomberg UK (@BloombergUK) July 5, 2023

 

Odey denies the allegations. A spokesman for Odey Asset Management declined to comment. London’s Metropolitan Police didn’t immediately respond to a request for comment.

The watchdog is responding to a barrage of questions from politicians over its handling of the investigation into the hedge fund manager. While it has been looking into Odey’s conduct for the past two years, the FCA has kept silent until now over the nature of that investigation. 

That’s left the FCA facing questions about the extent of its supervision of the firm, as well as its wider work on non-financial misconduct.

Odey Asset Management was plunged into turmoil last month after the Financial Times published multiple allegations of sexual harassment and assault by Odey. Numerous banks have cut ties with his firm and investors have raced for the exits, forcing the company to shut funds and suspend several others. 

The regulator said its assessment considers whether an individual is fit and proper to operate in the financial services industry in the future on the basis of their “honesty, integrity and reputation; competence and capability; and financial soundness,” according to the letter.

“We are investigating whether Mr Odey is a fit and proper person to work in financial services and whether Mr Odey has failed to comply with the FCA’s conduct rules relating to integrity and acting with due skill, care and diligence,” the FCA said.

–With assistance from Nishant Kumar.

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