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FCA investigating Crispin Odey for alleged illegal misconduct

TL;DR

  • The Financial Conduct Authority(FCA) has confirmed that it is looking into Crispin Odey and Odey Asset Management for misconduct allegations
  • Goldman Sachs is among banks cutting ties with the firm

The Financial Conduct Authority(FCA) has confirmed that it is looking into Crispin Odey and Odey Asset Management, a hedge fund, to see whether the hedge fund manager passes its “fit and proper” test to work in the financial industry amid allegations of his misconduct. The financial watchdog is looking into claims that Odey dismissed the firm’s executive committee for “an improper purpose.”

FCA investigates Odey for misconduct 

The FCA has begun an investigation into Odey and his conduct for the last two years, according to its July 3 filing. Odey has allegedly been involved in potentially criminal activities, so the FCA is also in touch with police investigators looking into him.

In the filing, the regulator mentioned that it was focused on improving the culture of the firms it oversees, ensuring the fitness of those in charge, and requiring the staff to assess the fitness of their certified staff appropriately. The FCA is also investigating whether he failed to comply with rules of conduct such as due skill, diligence, and integrity under the Financial Services and Markets Act 2023 guidelines

Last month, reports showed that Odey had allegedly sexually assaulted 13 women over two decades. However, he denied these allegations.

FCA chief executive Nikhil Rathi confirmed that the investigations began in mid-2021 and the FCA had been looking closely into the firm since 2020. He also said that Odey had threatened a judicial review of the investigation.

Banks cutting ties with Odey Asset Management

Odey Asset Management, following the allegations, has seen some of its funds and portfolio managers transfer to other firms. Goldman Sachs recently announced that it severed its ties to Odey Asset Management, saying it was “reviewing” the connection. JP Morgan Chase and Exane, controlled by French bank BNP Paribas, followed soon after, confirming that their relationship with Odey was ending. 

Meanwhile, the news comes after FCA’s major announcement reminding crypto firms to abide by its guidelines, or they would face criminal charges. Crypto firms must comply with the new rules, including a cool-off period of 24 hours for first-time investors, by October 2023, to prevent users from being misled.

The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Yvonne Kiambi

Yvonne is a blockchain and crypto enthusiast. She is passionate about writing and looks to effortlessly guide readers through the exciting world of crypto. You'll find her immersed in a good book when she's not writing.

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