The Financial Conduct Authority has blocked bosses at Odey Asset Management from withdrawing funds as it circles the hedge fund following allegations of sexual assault against founder Crispin Odey.
Odey’s eponymous firm has been in crisis after he was accused of sexual assault by 13 women in an investigation by the Financial Times. He denies the allegations and has described them as “rubbish”.
The FCA has now placed restrictions on the company that will prevent any staff, including Odey, from pulling cash from the firm without the prior consent of the watchdog.
“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 its own assets,” the FCA said.
“Each Friday, unless given written consent otherwise by the [Financial Conduct] Authority, provide the Authority with a list of its bank accounts, and the respective balances of each account at the close of business the preceding day,” the FCA added.
The restrictions will apply to both Odey Asset Management and Odey Wealth Management and came into force over the weekend, according to the FCA register. The restrictions apply to the company itself rather than its funds.
The tightened guardrails come after the beleaguered hedge fund was forced to shutter one of its funds and place restrictions on another last week after investors fled the firm in the wake of allegations against Odey.
The FCA warned the company to “secure all books and preserve all information and systems which may be relevant to demonstrating compliance” with the restrictions.
The watchdog has come under pressure to reveal the extent of its previous investigations into Odey, with the influential Treasury Select Committee last week demanding answers from the watchdog.
Odey Asset Management was contacted for comment on the FCA’s decision.