The Financial Conduct Authority has said it is not an alternative to criminal prosecution in a letter detailing its investigations into the Odey affair.
The regulator's chief executive Nikhil Rathi said it is important to recognise that the FCA is also not an alternative to a firm’s internal disciplinary processes or for proceedings through the employment tribunal.
“We can only take action to achieve or further one of our statutory objectives,” Rathi said.
“Regulatory action or an investigation of regulatory matters is not intended as a replacement for, or alternative to, a police investigation or criminal prosecution.”
The letter was in reply to questions by MPs sent to the FCA last month.
Harriett Baldwin, chair of the Treasury committee, asked the City watchdog to explain its investigation into Odey Asset Management after “deeply troubling” allegations were made against its founder.
Thirteen women told the FT they were the victims of sexual assault and harrassment by Crispin Odey, who denies the allegations.
Baldwin asked the FCA a number of questions about how it engaged and supervised Odey Asset Management, including details about whether it had received any reports about Odey’s behaviour before they came to light in the press, and how much of its engagement has been driven in particular by the FT’s article.
In response, Rathi outlined that the investigation into Crispin Odey focuses on the allegations that he dismissed Odey Asset Management’s executive committee after it attempted to discipline him for a second time in 2021, after giving him a formal written warning previously.
The FCA said Odey had not held an approved senior manager role since 2020 and his certification was removed at the request of Odey Asset Management and Odey Wealth Management.
The regulator is also investigating Odey Asset Management for possible contraventions of the FCA’s principles for business for failing to conduct its affairs with due skill, care and diligence, and failing to take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems and controls.
The investigations were opened in mid-2021, after which the FCA said it received a letter from lawyers acting for Crispin Odey, threatening judicial review.
Rathi said the FCA responded “robustly” to this, and continued to investigate.
Rathi also said the FCA has been in contact with the police given that some of the allegations are potentially criminal in nature.
sally.hickey@ft.com
