The FCA has levied a £1.8m ($2.33m) fine and imposed a ban on prominent hedge fund manager Crispin Odey, citing what it calls his “lack of integrity.” The decision, announced today, stems from Odey’s actions to obstruct internal disciplinary proceedings at Odey Asset Management LLP (OAM).

The FCA alleges Odey “deliberately sought to frustrate” OAM’s investigations into his conduct, demonstrating a “reckless disregard” for the firm’s governance. This obstruction, the regulator argues, led OAM to breach regulatory requirements. Furthermore, the FCA found Odey’s behavior towards both OAM and the FCA to be lacking “candor,” concluding that he is not a “fit and proper person” to operate in the UK financial services sector.

The controversy began when Odey received a final written warning from the OAM’s executive committee (ExCo) in February 2021 for inappropriate behavior. When a disciplinary hearing was scheduled in November 2021 to assess whether he had breached this warning, Odey, who held a major shareholding in OAM, took drastic measures. He removed the existing ExCo members and appointed himself as the sole member, effectively postponing the hearing indefinitely, claiming he couldn’t conduct it with impartiality.

Although Odey later appointed new ExCo members and resigned in January 2022, he once again intervened in March 2022, removing the ExCo and installing himself, delaying the hearing further. It wasn’t until nearly July 2022 that he appointed two new members, finally allowing the disciplinary hearing to proceed in November 2022, nearly a year after its initial scheduling.

“A culture of silence in which allegations of misconduct are not dealt with effectively can put consumers and markets at risk,” stated Therese Chambers, joint executive director of enforcement and market oversight at the FCA. “Mr Odey repeatedly sought to evade and obstruct efforts to hold him to account. His lack of integrity means he deserves to be banned from the industry.”

Upper Tribunal

It is important to note that Odey has referred the FCA’s Decision Notice to the Upper Tribunal, where both he and FCA will present their cases. Therefore, the FCA’s findings are currently provisional.

The decision becomes comes nearly two years after the FT and Tortoise Media published reports detailing claims of sexual assault and harassment against against Odey from 20 women, allegations he vehemently denies. The allegations of sexual misconduct led to Odey’s removal from OAM, and the hedge fund subsequently announced its closure in October 2023.

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