City watchdog restricts Crispin Odey and colleagues’ ability to access their own cash as crisis deepens amid misconduct allegations
- Odey AM and WM must receive permission for transactions, with exceptions
- The group last week halted withdrawals on four funds amid investor exodus
The City regulator has restricted the ability of Crispin Odey and colleagues to make any transactions with the assets of his funds business.
The regulator has told Odey Asset Management and Odey Wealth Management that they must bow receive written permission before making any transaction that could ‘any way dispose of, withdraw, transfer, deal with or diminish’ the value of its assets.
This includes cash invested within the businesses belonging to ‘controllers, members, officers or employees’, the FCA said.
Crispin Odey denies the allegations made against him in the Financial Times
Other investors in the firms’ funds however will be able to continue instructing Odey staff to make withdrawals on their behalf, which falls under exceptions for payments ‘in the ordinary course of business’.
The businesses will also be forced to provide the FCA with weekly updates of its bank accounts and their balances.
It is the latest setback for Odey AM, which is reeling in the wake of sexual misconduct and assault allegations revealed by the Financial Times.
Several major banks – including JP Morgan, Goldman Sachs and UBS – have severed ties with the firm as prime brokers and custodians.
Prime brokers provide hedge funds with lending and other services while custodians safeguard client money.
Mr Odey, who denies the allegations, was forced out by partners and the firm has announced it is in ‘advanced discussions’ to break itself up and transfer funds and staff to rivals.
But Mr Odey is understood to still have £600million of his own money across five funds, which have been taken over by other investment managers and will be part of this move to other funds.
The FCA’s restrictions apply to Odey AM from 17 June and 18 June for the wealth management unit.
Other exceptions to the restrictions include payments of salaries and those to suppliers, and transactions of under £20,000 made ‘in the ordinary course of business’.
The FCA said ‘The firm must not, other than in the ordinary course of business, or without the prior written consent of the Authority, in any way dispose of, withdraw, transfer, deal with or diminish the value of any of it’s own assets.’
Odey AM declined to comment.
