The UK Financial Conduct Authority (FCA) recently banned Crispin Odey, founder of the defunct Odey Asset Management, from the financial sector and fined him £1.8 million for displaying a "lack of integrity" in his conduct.
The hedge fund manager is accused of frustrating his firm's disciplinary proceedings regarding allegations of sexual misconduct. The FCA highlighted how Odey dismissed executives twice between 2021 and 2022 to prevent disciplinary hearings.
In 2020, Odey's firm found his behavior "inappropriate" but maintained that he was a "fit and proper" leader. In 2021, OAM's executive committee issued a final warning to Odey regarding continued inappropriate behavior. Later that year, the firm scheduled a hearing to determine whether Odey had breached the terms of the final warning. However, after firing the OAM's executive committee and appointing himself as the sole member, Odey allegedly postponed the proceedings indefinitely, citing his inability to be impartial.
"A culture of silence in which allegations of misconduct are not dealt with effectively can put consumers and markets at risk," said Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA. "Mr Odey repeatedly sought to evade and obstruct efforts to hold him to account. His lack of integrity means he deserves to be banned from the industry."
In 2023, Starling Insights published "The Era of Accountability," a Deeper Dive report discussing the global push from regulators, politicians, investors, employees, and the public to hold corporate leaders accountable for the (mis-) management of culture and conduct risks.
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