Crispin Odey has lost his status as a ‘fit and proper’ individual in the City of London, days after he was ousted from his hedge fund amid a sexual harassment scandal.
The Financial Conduct Authority’s (FCA) register showed that the 64-year-old is no longer certified by his firm, Odey Asset Management, to deal directly with clients.
The fund was required to certify him but the register showed his ‘fit and proper’ status had ended on June 12, two days after he was ousted from the partnership, according to The Times.
The loss of status is a major symbolic blow for Odey, who became one of Britain’s best-known hedge fund managers after profiting from a series of risky bets including against the pound during the Brexit referendum.
Odey faces allegations, published in the Financial Times earlier this month, of sexual misconduct against 13 different women. He denies the claims.
Allegations: UK financier Crispin Odey (pictured) has been accused of sexual assault or harassment by 13 women
The report has thrown the firm into crisis: withdrawals from several of its funds have been suspended as it struggles to prevent cash from flooding out of the business.
And Odey Wealth Management has told clients it is ‘considering several options’ for its future as the allegations against its founder take a ‘serious’ toll.
A letter to customers came as the FCA announced it was acting to shore up Odey’s businesses.
The FCA is restricting the movement of cash and assets from Odey Wealth as well as Odey Asset Management.
Clients have been withdrawing money and City institutions have been cutting ties following the allegations.
Odey is one of the UK’s most prominent financiers, setting up his firm in 1991. It is best known for its hedge fund business Odey Asset Management. He was removed as a partner of that business last week.
Odey Wealth is a separate firm within the financier’s group of companies, which are fighting for their futures in the light of the controversy.
In the letter to customers, reported yesterday by the Financial Times, Odey Wealth said the ‘events of the last week have had a serious impact on our business’.
Last week, Odey Asset Management said it was in ‘advanced discussions’ to break itself up and transfer funds and staff to rivals in what could spell the end of the group.
Several major banks have severed ties with the firm as prime brokers and custodians. Prime brokers provide hedge funds with lending and other services, while custodians safeguard client money.
