The
Financial Conduct Authority (FCA) has decided not to take action against Odey
Asset Management (OAM), the fund manager that shuttered its operations
earlier this year following multiple allegations of sexual misconduct against
its Founder, Crispin Odey.
In
an investor letter disclosed today (Tuesday), OAM confirmed the FCA’s
resolution, citing the closure of the regulatory investigation. The FCA’s CEO,
Nikhil Rathi, revealed in a letter to lawmakers on the Treasury Select
Committee that the investigation into Odey and OAM had been ongoing since 2021.
The
FCA, while declining further comment, referred to its official letter,
specifying that the investigation into OAM had concluded, but
the probe into Odey’s conduct remains active.
OAM,
a hedge fund in the UK, disclosed that it has completed its wind-down process,
with its final client relationship terminating on December 12.
Odey, the
Founder ousted in June amid allegations of sexual misconduct from multiple
women, continues to deny the accusations. The FCA is concurrently examining
Odey’s fitness and propriety to operate in financial services.
The
regulatory decision arises amid a challenging period for OAM, highlighting
broader concerns about accountability and governance within the financial
industry. Odey’s denial and the ongoing regulatory scrutiny underscore the
complexities surrounding the intersection of personal conduct and professional
responsibilities in the financial sector.
Odey Asset Management says FCA ‘will not be taking any action’ after closing probe https://t.co/L9rkxmcdMG
— Financial Times (@FT) December 19, 2023
Fund Restructuring: OAM’s Closure and Asset Transfer
Overview
Finance Magnates
reported earlier that OAM was closing its doors less than six months after its Founder, Odey, faced
sexual misconduct allegations. The closure, triggered by the controversy
surrounding Odey’s ousting in June amid allegations from thirteen women,
prompts a significant restructuring. All funds, including subsidiaries like
Brook Asset Management and Odey Wealth, are transferred to other asset
managers.
Key fund managers, such as James Hanbury and Jamie
Grimston, move to Lancaster Investment Management, while Oliver Kelton’s funds
are now under S.W. Mitchell Capital. The scandal led to severed ties with
banking partners and investor withdrawals, reducing the fund’s assets from
$13.3 billion to $3.8 billion. Legal challenges loom as two alleged victims
file a lawsuit against Odey and the firm for damages related to personal injury
and psychological harm.
The
Financial Conduct Authority (FCA) has decided not to take action against Odey
Asset Management (OAM), the fund manager that shuttered its operations
earlier this year following multiple allegations of sexual misconduct against
its Founder, Crispin Odey.
In
an investor letter disclosed today (Tuesday), OAM confirmed the FCA’s
resolution, citing the closure of the regulatory investigation. The FCA’s CEO,
Nikhil Rathi, revealed in a letter to lawmakers on the Treasury Select
Committee that the investigation into Odey and OAM had been ongoing since 2021.
The
FCA, while declining further comment, referred to its official letter,
specifying that the investigation into OAM had concluded, but
the probe into Odey’s conduct remains active.
OAM,
a hedge fund in the UK, disclosed that it has completed its wind-down process,
with its final client relationship terminating on December 12.
Odey, the
Founder ousted in June amid allegations of sexual misconduct from multiple
women, continues to deny the accusations. The FCA is concurrently examining
Odey’s fitness and propriety to operate in financial services.
The
regulatory decision arises amid a challenging period for OAM, highlighting
broader concerns about accountability and governance within the financial
industry. Odey’s denial and the ongoing regulatory scrutiny underscore the
complexities surrounding the intersection of personal conduct and professional
responsibilities in the financial sector.
Odey Asset Management says FCA ‘will not be taking any action’ after closing probe https://t.co/L9rkxmcdMG
— Financial Times (@FT) December 19, 2023
Fund Restructuring: OAM’s Closure and Asset Transfer
Overview
Finance Magnates
reported earlier that OAM was closing its doors less than six months after its Founder, Odey, faced
sexual misconduct allegations. The closure, triggered by the controversy
surrounding Odey’s ousting in June amid allegations from thirteen women,
prompts a significant restructuring. All funds, including subsidiaries like
Brook Asset Management and Odey Wealth, are transferred to other asset
managers.
Key fund managers, such as James Hanbury and Jamie
Grimston, move to Lancaster Investment Management, while Oliver Kelton’s funds
are now under S.W. Mitchell Capital. The scandal led to severed ties with
banking partners and investor withdrawals, reducing the fund’s assets from
$13.3 billion to $3.8 billion. Legal challenges loom as two alleged victims
file a lawsuit against Odey and the firm for damages related to personal injury
and psychological harm.
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- Source: https://www.financemagnates.com//institutional-forex/odey-asset-management-receives-fca-clearance-amid-allegations-of-sexual-misconduct/
