Hedge Fund Founder Odey Challenges Ban from City in Court

British hedge fund founder Crispin Odey appeared in court on Tuesday to challenge a ban from London’s financial services industry, in a case examining the powers of regulators over misconduct in finance.

Odey, founder of Odey Asset Management and once one of Britain’s best-known hedge fund managers, is appealing a decision by the Financial Conduct Authority (FCA) that fined him £1.8 million ($2.3 million) and barred him from the industry. The regulator said Odey lacked integrity and was not a “fit and proper” person to perform regulated financial roles.

The FCA’s action relates to Odey’s conduct during an internal investigation at his firm into allegations of sexual harassment and inappropriate behaviour.

• Crispin Odey challenges FCA ban from London finance industry
• Hedge fund founder appeals £1.8 million fine in tribunal
• UK regulator defends action over governance and misconduct

According to the regulator, Odey interfered with the disciplinary process by dismissing members of the firm’s executive committee who were responsible for overseeing the investigation in 2021 and 2022.

In submissions to London’s Upper Tribunal, Odey’s lawyers said his actions were taken to protect the firm, which they argued was facing an “existential crisis” during the controversy. They said the regulator’s decision was unfair and that the firm’s internal disciplinary process had already been compromised.

The FCA said Odey showed a “reckless disregard” for corporate governance and compliance standards by interfering with the investigation and undermining oversight within the firm. The watchdog said such conduct breached the standards expected of individuals working in regulated financial institutions.

Odey founded Odey Asset Management in 1991 and became known for profitable market bets, including gains during the 2008 global financial crisis. He has denied allegations of sexual misconduct made by several women.

The accusations led to a crisis for the firm. Investors withdrew funds and banking partners cut ties after media reports detailed claims from multiple women alleging misconduct over several years. Odey Asset Management later closed following the fallout.

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The tribunal hearing, expected to last several weeks, will decide whether the FCA ban and fine against Odey will remain in place or be overturned. The outcome may influence how regulators address governance failures and non-financial misconduct in the financial sector.