The FCA is pressing investment platforms including AJ Bell, Hargreaves Lansdown and Halifax over continuing to offer funds from Odey Asset Management to investors, the Financial Times (FT) has reported.

The FCA contacted investment platforms in June about their continued offering of funds branded under Odey’s name, or under Brook, the name given to funds managed by other partners of Odey Asset Management, according to the report on June 29, which quotes people familiar with the investigation.

On Sunday, the FT reported that Barclays is looking to end its corporate banking relationship with Odey Asset Management.

The British hedge fund has been faced with redemptions since the FT and Tortoise Media on June 8 jointly reported allegations by 13 women that its founder Crispin Odey had sexually assaulted or harassed them over a 25-year period. Odey has denied the allegations.

The regulator asked the investment platforms to explain how continuing to offer the funds was in the best interests of their clients, given the issues at the company, the report said.

Comment

GRIP asked Jake Green, Practice Group Co-Head, Global, Finance Regulatory at Ashurst, his thoughts on Odey and the FCA’s investigations. He said: “What has happened to Odey is a good example of how the FCA expects firms to think.” He suggests that firms should ask themselves, “On the one hand – have you stressed for similar – could you move quickly enough? … On the other side, do you have the right to walk away from your legal obligations if you are uncomfortable with allegations.”

“There is then the ‘retail: consumer-duty’ add on. What do you tell your clients in these situations? Potentially there is an out-flow and / or liquidity risk? Again, have you war-gamed what you might do.”