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Britain’s financial watchdog will ban Crispin Odey from the sector and fine the hedge fund founder £1.8mn for a “lack of integrity” in his conduct after he faced allegations of sexual harassment and assault.

Odey, who founded Odey Asset Management, “deliberately sought to frustrate OAM’s disciplinary processes into his conduct to protect his own interests”, the Financial Conduct Authority said on Monday.

Odey fell from grace after the Financial Times detailed allegations of sexual harassment and assault against him over a period of many years. He has strenuously disputed the allegations.

Odey will challenge the FCA’s decision, which is provisional, by referring it to the Upper Tribunal, a superior court of record that has equivalent status to the High Court.

The watchdog’s action was not based on the sexual harassment accusations against Odey themselves, but on his alleged attempts to frustrate the hedge fund’s efforts to address complaints about his behaviour and bring disciplinary proceedings against him.

The FCA said the hedge fund executive “demonstrated that he is not a fit and proper person to perform any function related to regulated activities” after he “showed reckless disregard” for his company’s governance and caused it to breach regulatory requirements.

Odey did not respond to a request for comment.

The hedge fund boss twice fired all of OAM’s executive committee after they planned disciplinary hearings about his behaviour, taking advantage of his majority shareholding in the business to replace them with himself, the FCA said.

After replacing the executives for the first time, Odey “indefinitely postponed” a disciplinary hearing into his conduct, saying he was “unable to conduct it with impartiality”, the FCA said, adding that his behaviour towards the fund and the regulator “lacked candour”.

“A culture of silence in which allegations of misconduct are not dealt with effectively can put consumers and markets at risk,” said Therese Chambers, joint executive director of enforcement and market oversight at the FCA. 

“Odey repeatedly sought to evade and obstruct efforts to hold him to account,” said Chambers. “His lack of integrity means he deserves to be banned from the industry.”

Odey is at present fighting a personal injury claim in a civil court filed by five of his alleged victims. He is contesting the claims and has also issued a libel claim against the Financial Times, which the FT is defending.

The hedge fund founder has not been authorised by the FCA to carry out any regulated financial services activity since 2023, while his firm had its authorisation removed last year.