The regulatory authority has notified Crispin Odey of its intent to take measures against the hedge fund leader for employing “unscrupulous tactics to safeguard his interests” following allegations of sexual misconduct.

The Financial Conduct Authority (FCA) has confirmed sending a cautionary notice to Odey, 65, accusing him of violating its conduct guidelines and exhibiting “a lack of integrity”.

This warning notice does not represent a conclusive ruling, as Odey retains the opportunity to present his case to the FCA’s regulatory decisions committee before any formal action is initiated. Odey was approached for a response.

Odey’s reputation as a prominent fund manager in the UK suffered a dramatic decline last year after multiple women reported to the Financial Times that they experienced sexual assault or harassment at his hands. The earliest report dates back to 1985, while the latest allegations emerged in 2018. Odey has vehemently denied these claims.

Many of the women alleged they faced harassment while working as receptionists or interns at Odey Asset Management, a company he established in Mayfair in 1991.

Previously managing investments of $4.4 billion, the hedge fund is now in the midst of a winding down process, with its staff and funds relocating to competing firms. Nevertheless, it was reported last month that Odey was reappointed as a partner in September, according to filings at Companies House.

The FCA has been investigating Odey since the summer of last year, having written to him to clarify that it now considers him to have breached individual conduct rule 1 of its code of conduct, which mandates acting with integrity.

In December 2021, shortly before an internal disciplinary meeting at Odey Asset Management regarding allegations of “inappropriate conduct,” Odey allegedly leveraged his majority shareholding to dismiss the current executive committee members and appoint himself as the sole member. He subsequently chose to indefinitely delay the disciplinary meeting, as reported by the FCA.

On January 12, 2022, a week after the initially scheduled date for this hearing, Odey resigned and made changes to the executive committee at Odey Asset Management.

However, a couple of months later, the FCA noted, in light of “ongoing disagreements about how to manage the disciplinary meeting,” Odey again utilized his shareholding to oust the newly appointed committee members and reinstated himself as the sole member. He ultimately stepped down from the committee for the final time in July 2022 after appointing two new members, with a third joining in October 2022.

The disciplinary meeting pertaining to Odey’s conduct was eventually conducted in November 2022.

The FCA remarked: “[Odey’s] actions were calculated to obstruct Odey Asset Management’s ongoing disciplinary proceedings regarding his behavior, aimed at preserving his interests; and demonstrated a blatant disregard for OAM’s governance, resulting in regulatory violations.”

Furthermore, the authority stated that Odey’s conduct toward Odey Asset Management and the FCA “lacked transparency” and asserted: “He employed improper methods to safeguard his interests and achieve his goals; the justifications he provided for dismissing the executive committee and his interactions with the FCA further underpin the conclusion that he lacks integrity.”