The UK financial watchdog will ban Crispin Oddie from the sector and punish the hedge fund founder £1.8 million for “lack of integrity” in his conduct after facing allegations of sexual harassment and assault.
Odey, who founded Odey Asset Management in 1991, “deliberately sought to irritate OAM’s disciplinary process by attempting to irritate his actions in order to protect his own interests,” the Financial Conduct Bureau said Monday.
Odey fell from grace after the Financial Times detailed allegations of sexual harassment and attacks against him over the years. He vehemently objected to the allegations.
The hedge fund boss challenges the FCA’s decision by referring to the superior court, a superior court with comparable positions in the High Court. This is temporary.
Watchdog’s actions are not based on accusations of sexual misconduct against Odey himself, but on his suspicious attempts to deal with complaints about his actions and irritate the hedge fund’s efforts to bring about disciplinary procedures against him.
The FCA said the hedge fund executive “experienced a reckless neglect” to the company’s governance, and after violating regulatory requirements, he “exemplified that he is not an unsuitable person to carry out functions related to regulated activities.”
Odey did not respond to requests for comment.
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Between December 2021 and March 2022, Odey fired all of the OAM’s executive committee twice after planning a disciplinary hearing on his actions and using a majority stake in the business to replace himself, the FCA said.
After replacing the executive for the first time, Odey “deferred the disciplinary hearing for his actions indefinitely” and added that his actions against the fund and regulators were “frankly lacking.”
“We are pleased to announce that there are many factors that can be used to implement this program,” said Therese Chambers, co-executive director of FCA’s enforcement and market surveillance.
“Odey repeatedly asked to avoid and sabotage his efforts to explain him,” Chambers said. “His lack of integrity means he deserves to be banned from the industry.”
Odey waived his right to represent the FCA’s regulatory decision-making committee. He instead introduced the matter directly to the court, allowing him to restrain his legal arguments until a civil trial in the superior court.
Odey made an unexpected visit to the London court last week. There, former Barclays boss Jes Staley challenges the UK financial regulator’s decision to punish and ban allegations that he played a connection with sex offender Jeffrey Epstein.
The FCA usually takes action only against people who appear to be appropriate and inappropriate because of non-financial misconduct if they are found guilty or if the findings are made in that respect.
In Odey’s case, he takes action on alleged failures in corporate governance in relation to disciplinary proceedings, not the fundamental claim itself.
An announcement of the decision released Monday by the FCA shows how in 2020 the hedge fund executive committee investigated allegations of sexual harassment and assault against female members of staff, including “inappropriate physical contact,” “sexual” comments, and invitations to lunch and shopping.
The Executive Committee found that the action was “inappropriate” and violated its own policies, but after Odey showed “signs of Contrition,” it determined that he was not violating FCA rules and was the appropriate and appropriate leader of the company.
The committee will issue Odey in 2021 with a final written warning against fraud, requiring him to comply with the rules and act professionally with all staff.
The warning hints at a climate of fear, “due to the desire not to “frill the feathers” or concerns of not doing anything.” . . (Some) Employees may even resign without saying anything, instead of filing a complaint. ”
When the committee subsequently investigated violations of that rule, it created a contingency plan for Odey’s potential replacement, suggesting that he work remotely, urged him to threaten “corporative reeling,” the FCA said.
Odey expressed light emptying for remote or individual work arrangements proposed by the committee, calling them “spinless shit,” and said the Human Resources Act “wasn’t an issue here,” the FCA said.
The FCA has listed some rules that Odey has violated his hedge fund. They included that it must be managed by at least two good-reputable people, maintaining its risk management apart from other businesses, and assessing the fitness and validity of leaders at least under the UK senior managers and accreditation system.
Odey often denounced and threatened the FCA, Watchdog added, “You won’t get away with this. You’re trying to cause a crisis. I’ll walk and leave you to clean up the mess.”
The OAM is currently in the air, rebuilding funds and transferring certain fund management activities to other asset managers,” the FCA said.
The founder of the hedge fund has not been permitted to carry out financial services activities regulated by the FCA since 2023, but his company removed the approval last year. OAM managed $13.3 billion in assets at its peak.
The FCA’s proposed Odey ban will work to strengthen guidelines on how financial institutions should tackle fraud such as bullying and sexual harassment. Last week, the proposal was delayed and said it would now be made public by June.
Odey is fighting personal injury claims in a civil court filed by five victims. He challenges the claims and also issues an honorable lib loss claim against the Financial Times, which the FT defends.
