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.

Founder Odey Denies Allegations

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.