Regulation
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The U.K.’s Financial Conduct Authority (FCA) is seeking to ban hedge fund manager Robin Crispin Odey from the financial industry in the U.K., citing an alleged “lack of integrity.”

The regulator issued a notice indicating its decision to sanction Odey — founder of fund manager Odey Asset Management LLP (OAM) — by imposing a £1.8-million fine and banning him from the industry, citing conduct that, it concluded, “demonstrated that he is not a fit and proper person” to perform regulated activity. 

Odey has appealed the ruling to the Upper Tribunal, which will now hear the case. 

As a result, the regulator’s findings and proposed sanctions are “provisional” and only reflect the FCA’s conclusions.

According to the FCA’s notice setting out its decision, an internal investigation by the firm into allegations of sexual harassment against Odey between 2003 and 2020 concluded that he “had behaved inappropriately towards a number of female members of staff” and fell short of its own standards, but didn’t breach FCA rules.

However, the regulator has now found that Odey breached its rules in the face of potential internal disciplinary action.

Among other things, it said that “Odey deliberately sought to frustrate [his firm’s] disciplinary processes into his conduct to protect his own interests”; that he caused the firm to breach its regulatory requirements; and “lacked candour” towards the firm and the regulator.

Specifically, the FCA said that Odey twice replaced the members of its executive committee, which conducted the firm’s investigation and proposed disciplinary action, appointing himself as the sole member of the committee and disrupting the disciplinary process.

“A culture of silence in which allegations of misconduct are not dealt with effectively can put consumers and markets at risk. Mr. Odey repeatedly sought to evade and obstruct efforts to hold him to account. His lack of integrity means he deserves to be banned from the industry,” said Therese Chambers, joint executive director of enforcement and market oversight at the FCA in a release.

OAM is currently in the process of being wound up.