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FCA to Investigate Non-Financial Misconduct

FCA to Investigate Non-Financial Misconduct

by Starling Insights

Starling Insights Editorial Board

Aug 07, 2023

Observations

The investigative capabilities of the UK Financial Conduct Authority (FCA) have come under scrutiny amid allegations of sexual misconduct against prominent hedge fund manager Crispin Odey. Nikhil Rathi, the FCA's CEO, has assured lawmakers that the agency would investigate non-financial misconduct cases that impact "fit and proper" standards required for work in financial services.

In June, the Financial Times published allegations from 19 women who reported sexual harassment, assault, or inappropriate behavior by Odey between 1985 and 2021. Following this revelation, the FCA revealed that it had been conducting an investigation into Odey and his hedge fund, Odey Asset Management (OAM), since 2021. The FCA's probe sought to determine whether Odey was a "fit and proper" person to work in financial services following allegations he breached integrity rules in dismissing the executive committee of his firm in 2021 for "an improper purpose."

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