The UK’s Financial Conduct Authority is quizzing investment platforms, including Hargreaves Lansdown Plc, over their decision to allow retail investors to continue to buy into funds from Odey Asset Management via their services, according to a person familiar with the matter.
(Bloomberg) — The UK’s Financial Conduct Authority is quizzing investment platforms, including Hargreaves Lansdown Plc, over their decision to allow retail investors to continue to buy into funds from Odey Asset Management via their services, according to a person familiar with the matter.
The regulator has asked about how the continuing access was in the best interests of their clients, the person said, who asked not to be identified discussing private matters. The access, which was reported by Bloomberg earlier this month, comes even as the money manager bleeds assets and is exploring options to hive them and their employees off in the wake of sexual assault allegations against founder Crispin Odey.
Read more: Odey Funds Bleeding Assets Remain Open to Retail Investors
The FCA is also in contact with firms including AJ Bell Plc and Halifax, according to the Financial Times, which reported the outreach earlier. The regulator has requested information about the level of buying and selling of the funds and has asked about the transfer of any funds that are being sold by Odey Asset Management to third parties, the FT said.
The FCA didn’t immediately respond to calls for comment.
At AJ Bell, the funds are not part of its packaged solutions, while at Hargreaves Lansdown, they aren’t part of their coverage or rated products, representatives for the firms have previously said. Platforms reserve the right to restrict funds, but doing so is typically considered an unusual move.
–With assistance from William Shaw and Nishant Kumar.
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