MPs grill financial watchdog over Odey probe

MPs have written to the City regulator asking it to explain its handling of allegations of misconduct against financier Crispin Odey in recent years.

The MPs want the Financial Conduct Authority to say what it knew about the claims and what action it took.

Mr Odey was forced to step down from the hedge fund he founded on Saturday after reports of sexual harassment allegations by 13 women.

The FCA had been investigating the fund for two years before the scandal broke.

A spokesperson for the regulator said: "We understand the Treasury Committee's interest in this and we'll of course reply shortly."

Odey Asset Management (OAM) has been approached for comment on the Committee's letter.

Mr Odey has denied the harassment claims, telling the Guardian the allegations were either untrue or involved consensual relations.

In 2020, Mr Odey was accused of assaulting a female investment banker at his London home in 1998, but was cleared of indecent assault after a trial.

Following the case his company reportedly did an internal investigation into Mr Odey's behaviour and gave the findings to the FCA.

Odey Asset Management told the watchdog at the time that it had decided to keep Mr Odey on as chief executive, having given him a "final written warning" for inappropriate behaviour.

But in Wednesday's letter, the MPs asked the watchdog whether it had been proactive enough in its oversight of the business.

Harriett Baldwin, chair of the Treasury Committee, said: "Culture in financial services, and the experiences of women in the industry, have been ongoing concerns of the Treasury Committee."

The FCA has been given until 5 July to respond to the questions, which focus on the "nature and intensity" of its supervision and engagement with OAM over the last five years.

The MPs asked the watchdog to explain whether it scrutinised Mr Odey's move in November 2020 from a role requiring FCA approval of his personal suitability, to a role where this was certified by his company.

They have also asked whether the regulator had any role in the final written warning given to Mr Odey in 2020, and if it took any action as a result.

In addition, the Committee quizzed the FCA about its wider approach to sexual harassment in the industry, asking how many individuals it had investigated for misconduct since 2019.

Odey Asset Management has been under pressure since the Financial Times reported last week that 13 women had accused Mr Odey of misconduct over 25 years, with the latest alleged incident taking place in December 2021.

Over the weekend OAM sought to distance itself from Crispin Odey, saying the financier would be leaving the firm.