Odey to close wealth management business

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Odey Asset Management’s wealth business is to close and return assets to clients months after founder Crispin Odey was accused of sexual misconduct.

The wealth business is closing in both Guernsey and the UK, according to people familiar with the matter.

The Financial Conduct Authority, the UK regulator, said of the closure: “We are aware of Odey Wealth Management’s intention to wind down the business. We will work closely with the firm as it winds down, to ensure clients are treated fairly.” 

The decision to wind down the business comes after the FT published an investigation in June that included detailed allegations from 13 women of sexual assault and harassment by the firm’s eponymous founder.

The allegations triggered a tumultuous period for the hedge fund group, prompting it to suspend or shut certain funds and vacate its longstanding Mayfair office. Odey was ejected from the firm he founded three decades ago within days of the investigation being published.

Odey Wealth, which was launched in Guernsey in 2008 and opened its London office in 2010, provides investment advisory services to clients. It is part of the Odey Group, which also includes Odey Asset Management and Brook Asset Management. 

The subsidiary wrote to clients in June to say it was “considering several options” for the business as it dealt with the fallout from the allegations against its founder, which prompted many of its prime brokers to sever ties. 

In the same month, the FCA placed restrictions on Odey Wealth and its parent company, which included an obligation to submit details of its bank accounts to the regulator each week, and to seek regulatory approval for “extraordinary” payments above £20,000.

Odey has strenuously disputed the allegations from the 13 women. Since then, a further six women alleged they were sexually harassed or assaulted by the financier. He did not respond to requests for comment on these subsequent allegations.

Last month, Odey admitted for the first time an incident of sexual misconduct after the 20th woman to accuse him came forward alleging he groped her breasts in the office. Odey said the incident did occur but that it was an “aberration” he blamed on the after-effects of an anaesthetic he had been given that day at the dentist.