Odey loses appeal against UK regulator ban and fine

Crispin Odey has lost his appeal against a ban and fine from UK regulators, with the Upper Tribunal upholding the Financial Conduct Authority’s (FCA) decision to suspend the founder and majority owner of Odey Asset Management (OAM) for lack of integrity.

The tribunal upheld the regulator’s finding that Odey breached a final written warning issued after an internal investigation into inappropriate behaviour toward female employees. It found that Odey twice used his majority shareholding to remove the firm’s executive committee and appoint himself as its sole member, frustrating disciplinary proceedings and protecting his position.

Between £2.55bn and £2.84bn in assets were under management at OAM when Odey removed the committee in December 2021 and March 2022. The firm subsequently notified investors of operational risks and stopped marketing its funds to new investors in June 2022. OAM was authorised by the FCA until May 2024 and is now in wind-down.

FCA says Odey acted as though rules did not apply

The tribunal also upheld allegations that Odey lacked candour in his dealings with the firm, its clients, and the FCA. It found that he showed no contrition during the hearing and lacked insight into his conduct. The financial penalty was reduced from £1.83m to £1.53m.

FCA executive director Therese Chambers said Odey had acted as though the rules did not apply to him. “He twice sacked those tasked with protecting female employees from his inappropriate behaviour when they tried to hold him to account. He felt the rules shouldn’t apply to him and acted to save his own skin,” she said.

While the tribunal accepted Odey’s argument that he did not deliberately remove the committee to obstruct the investigation, its decision reflects a strict view on personal accountability in senior roles. A fund manager who uses ownership rights to dismantle governance structures may find that regulatory bodies interpret such actions as a conscious attempt to evade oversight, regardless of intent.

During the hearing Odey reinvented history, painted himself as a victim and displayed no contrition. That arrogant entitlement and the resulting complete disregard for proper governance means Mr Odey is unfit to work in financial services, Chambers said.