Financial watchdog warns it will ‘take action’ against Crispin Odey

The UK financial watchdog has said Crispin Odey’s response to allegations of sexual misconduct breached its rules and “lacked integrity”.

The Financial Conduct Authority (FCA) said in a new warning notice that it plans to “take action” against the hedge fund boss as a result.

It reported that his “behaviour towards both Odey Asset Management and the FCA lacked candour” after allegations of misconduct were made against him.

Founded in 1991, Mr Odey’s firm made headlines for its big bets on the British economy, making hundreds of millions of pounds from the Brexit vote in 2016.

His hedge fund empire quickly fell apart after the Financial Times (FT) newspaper reported sexual harassment and assault complaints in June 2023.

They included claims from several women, who reportedly had social or professional relationships with Mr Odey, that they had been abused or harassed by him, with some alleging he sexually assaulted them.

Mr Odey has previously denied the allegations against him, telling the FT they were “rubbish”. In May, he sued the FT for libel. He has called himself the victim of a “witch hunt”.

The FCA launched an investigation into his conduct, which is ongoing.

In the warning notice, the regulator did not comment on the accusations against Mr Odey, but was critical of his response to Odey Asset Management and the regulator.

Mr Odey has the right to respond to the findings and appeal against them to the FCA.

In the notice, it said Mr Odey “used improper means to protect his own interests and achieve his objectives” following the allegations.

“The FCA considers that during the relevant period Mr Odey demonstrated a lack of integrity in that his actions were deliberately designed to frustrate Odey AM’s ongoing disciplinary process into his conduct, in order to protect his own interests,” it said.

The FCA also said he “showed a reckless disregard for Odey AM’s governance and caused Odey AM to breach certain regulatory requirements”.