The UK’s financial regulator said it’s investigating whether Crispin Odey passes its ‘fit and proper’ test to operate in the financial industry as it responded to a barrage of questions from politicians over its handling of the investigation into the hedge fund manager.
The Financial Conduct Authority is focusing on allegations that Odey dismissed the executive committee at Odey Asset Management for “an improper purpose,” the regulator said in a July 3 letter to UK lawmakers. The FCA said its enforcement arm is leading the investigation.
The watchdog has been looking into Odey’s conduct for the past two years, but has kept silent until now over the nature of the 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, who denies the allegations. 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 FCA said that as some of the allegations are “potentially criminal” in nature it has been in contact with the police.
