The UK Financial Conduct Authority (FCA) has defended its decision to fine and ban hedge fund manager Crispin Odey from the financial sector, telling a London tribunal that he had demonstrated a pattern of “threats, distortion of facts and falsification” in his dealings, according to a report by the Financial Times.
The remarks came during closing arguments at the Upper Tribunal in London, where Odey is challenging a £1.8m penalty and his exclusion from regulated financial activity. The regulator maintains that he is not “fit and proper” to operate in financial services due to repeated breaches of ethical standards and governance rules at his former firm, Odey Asset Management.
The case has brought a series of serious allegations into public view, including claims of sexual harassment made by multiple former employees, alongside accusations of bullying, misleading investors, falsifying internal records and attempting to obstruct regulatory scrutiny.
FCA counsel Clare Sibson KC argued that Odey attempted to “create a false reality” in which he portrayed himself as the victim, particularly in relation to his decision to dismiss senior executives at his firm on two occasions. The regulator said those actions were intended to prevent disciplinary processes linked to misconduct allegations.
Odey’s legal team rejected the regulator’s case, arguing that the FCA was effectively attempting to pursue a sexual misconduct case “by the back door.” His lawyers urged the tribunal to disregard what they described as “lurid and prejudicial” details of harassment allegations, claiming they were not central to the legal basis of the sanctions.
In written submissions, Odey’s counsel said his actions in removing senior executives were taken in response to what he viewed as undue pressure from the regulator, which he believed threatened the stability of his firm and deprived him of a fair internal process.
The FCA, however, argued that Odey’s conduct showed a persistent lack of integrity and an absence of insight into the seriousness of his behaviour, including his decision-making around governance and dismissal of senior staff.
The tribunal proceedings have referenced dozens of allegations from former employees of Odey Asset Management, including claims of inappropriate physical contact. Odey has denied wrongdoing.
Odey, once a prominent hedge fund figure known for high-profile macro bets including shorting UK banks during the 2008 financial crisis, has faced increasing legal and reputational pressure since allegations of misconduct were first reported publicly. He recently withdrew a £79m libel claim against the FT which published claims against him, acknowledging it was unlikely to succeed.
