Crispin Odey has been unsuccessful in his attempt to overturn a lifetime ban from working in the City of London, a consequence of numerous sexual misconduct allegations. The disgraced hedge fund tycoon's legal challenge was dismissed by the Upper Tribunal on Monday, marking a significant downfall for the 67-year-old financier.
The Financial Conduct Authority (FCA) had previously barred Odey from the UK finance industry and imposed a fine of over £1.8 million in March of the previous year, citing a "lack of integrity." This decision stemmed from his management of disciplinary processes related to alleged sexual misconduct at his firm, Odey Asset Management (OAM).
According to information presented to the tribunal by the FCA, a report compiled by the law firm Simmons & Simmons in 2021 detailed at least 46 historical allegations of inappropriate conduct by Odey towards female employees at OAM between 2003 and 2020. Further allegations emerged that Odey breached a final written warning by sexually harassing a temporary receptionist in late 2021.
The FCA contended that Odey then twice dismissed members of OAM’s executive committee, which was tasked with investigating the alleged breach. This action left Odey as the sole member of the committee and led to the indefinite postponement of the disciplinary process. The FCA's barristers argued that these actions constituted an "abrogation of Odey’s duty to act with integrity" and demonstrated he was "not fit and proper" for the financial services industry.
Lawyers representing Odey asserted that the dismissals were due to his belief that he was facing an unfair process that would lead to his removal from the company. Odey himself denied the allegations, stating to the tribunal that he could not see any other option but to dismiss the committee members at the time.
However, the tribunal judges found that Odey "lacked integrity in each of the ways that the authority alleges." They stated that Odey's asserted beliefs or concerns were not the primary or contemporaneous motives for his actions and that "many of the beliefs he did not even hold at the time, and those that he did were not reasonably held but reflected a warped set of values based on a strong sense of entitlement." The tribunal did reduce the FCA's original fine from £1.8 million to £1.5 million.
Therese Chambers, executive director of enforcement and market oversight at the FCA, commented on the ruling, stating that Odey "clearly thought he could act with impunity." She added, "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. During the hearing he 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."