UK FCA decides not to take action against Odey Asset Management regarding allegations of sexual misconduct
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The UK’s financial watchdog, the Financial Conduct Authority (FCA), recently decided that it will not take action against Odey Asset Management (OAM) regarding allegations of sexual misconduct.
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OAM investigation concluded, but the Odey probe remains active
OAM is the fund manager that shuttered its operations earlier in 2023 after multiple allegations of sexual misconduct emerged against Crispin Odey, its founder. The fund manager confirmed the FCA’s decision in an investor letter sent this Tuesday, December 19.
The letter also said that the regulatory investigation has been officially closed. The investigation into both the OAM and its founder, Odey, has been ongoing since 2021, as Nikhil Rathi, the CEO of the FCA, told lawmakers on the Treasury Select Committee.
The FCA did not comment further on its decision, but it did refer to its official letter, which specified that the probe into Odey’s conduct would remain active even though the investigation against Odey Asset Management was concluded.
OAM itself revealed that it had completed the wind-down process and that its last client relationship was terminated on December 12.
The scandal highlighted concerns regarding accountability and governance
The trouble for the company and its founder emerged earlier this year in June when 13 different women accused him of sexual misconduct. Odey has denied the accusations, and still continues to do so.
As part of its investigation of the matter, the FCA started examining the founder and whether he was fit to operate in financial services.
It is also worth noting that the regulatory decision came amid a rather challenging period for OAM. It highlighted larger concerns regarding governance and accountability in the wider financial industry. Odey’s denial of the allegations, as well as the continued regulatory scrutiny, however, underscore the complexities regarding the intersection of personal conduct and professional responsibilities in the world of finance.
Earlier this year, reports emerged stating that OAM was closing its doors, which happened less than six months after Odey faced the allegations.
OAM lost partners, investors, and key fund managers
The closure was triggered by the controversy surrounding the firm’s founder’s ousting in June of this year, and it revealed the need for significant restructuring of the company. Before long, all funds were transferred to different asset managers, including Odey Wealth and Brook Asset Management.
Meanwhile, key fund managers, such as Jamie Grimston and James Hanbury, decided to move to Lancaster Investment Management. Meanwhile, S.W. Mitchell Capital took over for Oliver Kelton’s funds.
In time, the scandal also resulted in OAM severing ties with its banking partners, and investors withdrew their funds, which led the fund’s assets to drop from $13.3 billion to only $3.8 billion. In addition to all that, two alleged victims filed a lawsuit against Odey, as well as his company, for damages related to psychological harm and personal injury.
