(Adds FCA comment in paragraph 3, context in paragraph 4, new details and context paragraphs 8-11)
LONDON, June 14 (Reuters) – Lawmakers on Britain’s powerful Treasury Select Committee have written to the Financial Conduct Authority to question the regulator’s supervision of Odey Asset Management (OAM) and its founder Crispin Odey.
The letter sent to the FCA on Wednesday, and signed by the committee’s chair Harriett Baldwin, follows allegations of sexual misconduct by OAM’s founder, Crispin Odey, which were reported by the Financial Times and Tortoise Media last week. Odey denies the allegations.
OAM declined to comment on the letter. An FCA spokesperson said: “We understand the Committee’s interest in this and we’ll of course reply shortly.”
The letter is likely to spark increased scrutiny of the watchdog’s handling of alleged misconduct by Odey, after it began an investigation into the high-profile financier in 2021.
“Culture in financial services and the experiences of women in the industry are ongoing concerns of the Treasury Committee,” said Baldwin.
Baldwin has asked the FCA to respond to a series of questions on the “nature and intensity” of its supervision and engagement with OAM over the last five years, with a response due by July 5.
The questions include whether the FCA had scrutinised 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 firm.
The FCA was also asked if it had received written communication from OAM about Odey’s conduct in January 2021, as the FT reported, and whether it had been aware of a final written warning reportedly sent to Odey, and whether the regulator took any action as a result.
The letter also asked the FCA how many individuals it has investigated for sexual harrassment across the wider industry since December 2019, when it became responsible for supervising senior manager conduct.
OAM has been scrambling to respond to the developments in recent days, closing one fund and restricting money clients can pull from another, while it also tries to keep its prime brokers from ending vital relationships with the firm.
Over the weekend OAM sought to distance itself from Crispin Odey, saying the financier would be leaving the firm. (Reporting by Iain Withers and Sinead Cruise, editing by Lawrence White and Toby Chopra)
