Former hedge fund manager Crispin Odey has lost his appeal against a Financial Conduct Authority (FCA) ban from the UK financial services sector, with the Upper Tribunal ruling on 14 September that he lacked integrity while reducing his fine from £1.83 million to £1.53 million.

The tribunal upheld the FCA’s decision to prohibit Odey from working in financial services over his conduct at Odey Asset Management between December 2021 and November 2022. Judges found he had twice removed the firm’s executive committee as it sought to discipline him over allegations of sexual harassment, describing his actions as an attempt to avoid accountability.

The ruling stated that Odey had “misused his power as controller” to remove the committees in order to protect his own interests and pursue his objectives. Judges concluded that he was not a fit and proper person to work in the industry and that the FCA had been reasonable in imposing the prohibition order.

The Guardian reported that the appeal hearing in March examined more than 46 allegations of sexual harassment involving female staff, alongside accusations concerning company minutes, investors, colleagues and the regulator. The case focused on Odey’s response to attempts to investigate alleged misconduct rather than determining the underlying sexual harassment allegations.

The FCA’s executive director for enforcement and market oversight, Therese Chambers, said: “Mr Odey clearly thought he could act with impunity.” She said his conduct demonstrated a “complete disregard for proper governance” and meant he was “unfit to work in financial services”.

The ruling follows several legal developments since Odey resigned from his hedge fund in 2023 after the Financial Times reported allegations of sexual harassment and assault by 20 women. Odey Asset Management ceased trading later that year.

In June, Odey settled separate personal injury claims brought by five women concerning alleged sexual assault, including a rape allegation, according to the Financial Times. He has denied wrongdoing in relation to the allegations and recently abandoned a libel action against the newspaper over its reporting.

During the March hearing, Odey acknowledged that revelations about his behaviour could make him appear a “creepy old man”, while telling judges he did not remember some incidents described in evidence. The tribunal said he had expressed no contrition and had wrongly presented himself as the victim.

Odey, a former Conservative Party donor and prominent Brexit supporter, became known for betting against British banks during the 2008 financial crisis before building the hedge fund business that bore his name.

---