The Upper Tribunal has upheld the Financial Conduct Authority's ban on Crispin Odey, founder and majority owner of Odey Asset Management (OAM), finding that he lacked integrity and is unfit to work in financial services. The Tribunal reduced the fine the FCA had proposed alongside the ban from £1.83 million to £1.53 million.
The FCA's case comprised five allegations. The Tribunal fully upheld all of them and agreed that each demonstrated a lack of integrity on Mr Odey's part.
Disciplinary process halted
Mr Odey had faced an internal disciplinary process at OAM for breaching a final written warning relating to repeated and persistent inappropriate behaviour towards female employees.
In response, according to the Tribunal, he bullied and threatened his executive directors and twice dismissed OAM's executive committee (ExCo) when it did not give in to his improper pressure, bringing the internal disciplinary process to a halt. The Tribunal found he was only willing to answer to a governing body that would reach a decision he agreed with, namely not to sack him.
His purpose was self-preservation and avoiding accountability for his behaviour, the Tribunal said. It found he abused his power and disregarded the impact of his actions on the firm and its employees, in particular women working in a culture where his inappropriate behaviour had been normalised, sending a message that he was effectively untouchable. His attempted justifications for removing the ExCos were, in the Tribunal's assessment, no more than a smokescreen.
Dealings with the FCA lacked candour
Beyond the allegations arising directly from the dismissal of the executive committees, the Tribunal upheld findings that Mr Odey's dealings with OAM, its clients, its investors and the FCA lacked candour. That included false assertions to, and threatening behaviour towards, FCA staff.
The Tribunal also found that during the hearing Mr Odey showed a lack of insight into why his conduct lacked integrity, expressed no contrition and wrongly considered himself the victim. In multiple respects it found his evidence lacked credibility.
Therese Chambers, executive director of enforcement and market oversight at the FCA, said: 'Mr Odey clearly thought he could act with impunity. He twice sacked those tasked with protecting female employees from his inappropriate behaviour when they tried to hold him to account. He felt the rules shouldn't apply to him and acted to save his own skin.'
She added: 'During the hearing he reinvented history, painted himself as a victim and displayed no contrition. That arrogant entitlement and the resulting complete disregard for proper governance means Mr Odey is unfit to work in financial services.'
