Crispin Odey banned from finance industry after tribunal dismisses challenge

Crispin Odey, the former hedge fund manager, has been banned from the UK finance industry after an Upper Tribunal dismissed his legal challenge against the Financial Conduct Authority (FCA). The tribunal ruled on Monday that Mr Odey lacked integrity in his dealings concerning investigations into alleged sexual misconduct at his firm, Odey Asset Management (OAM).

The FCA had decided to ban Mr Odey from the industry in March last year. The decision followed his handling of disciplinary processes related to numerous historical allegations of inappropriate conduct towards female employees at OAM between 2003 and 2020. Mr Odey was issued a final written warning by OAM in 2021 over these allegations.

Actions during investigation

The tribunal found that Mr Odey had breached the terms of his warning by allegedly sexually harassing a temporary receptionist later in 2021. He subsequently dismissed members of OAM's executive committee (ExCo), which was investigating this alleged breach, eventually leaving himself as the sole member. The Upper Tribunal, in a 229-page ruling, stated that Mr Odey was aware of his power and sometimes used it with junior female staff for personal gratification. It concluded he had no reasonable basis for removing the ExCos and did so because he feared they would not rule in his favour, confirming he lacked integrity.

Therese Chambers, executive director of enforcement and market oversight at the FCA, said Mr Odey acted to save his own skin and displayed 'arrogant entitlement' and 'a complete disregard for proper governance', making him unfit for financial services. She added that he had reinvented history and painted himself as a victim during the hearing, showing no contrition.

The tribunal judges noted that Mr Odey's beliefs when dismissing the ExCos reflected a 'warped set of values based on a strong sense of entitlement'. They stated his conduct showed a reckless disregard for OAM's governance and regulatory compliance, potentially entrenching a culture where inappropriate behaviour was normalised and allegations were not properly scrutinised. The judges were satisfied that Mr Odey's purported justifications for his actions were unreasonable.

Lawyers for Mr Odey argued he acted believing he faced an unfair process that would lead to his removal from the company. Mr Odey denied the allegations, stating he felt he was a 'poster boy for the authority’s agenda' and a victim of a campaign by the FCA to remove him.

Previous FCA action

The FCA had previously fined Mr Odey £1,835,200. The Upper Tribunal reduced this fine to £1,529,374.