The UK’s Financial Conduct Authority has restricted the movement of cash and assets from Odey Asset Management in a bid to restore order at the hedge fund after its founder Crispin Odey was sacked over allegations of sexual impropriety.
On Monday, FCA will publish details of the voluntary restrictions agreed with Odey Asset Management, two people familiar with the situation told the Financial Times.
The restrictions, which have also been agreed by an associated company, Odey Wealth Management, will require them to maintain cash and assets for the normal operation of their business.
Other than the normal course of business, one person said the FCA would require pre-approval for transactions above a certain level.
FCA declined to comment, as did Odey Asset Management and Odey Wealth Management.
One person familiar with the regulator’s protocols said it was normal to place restrictions on companies going through “difficulties” to ensure they could continue to conduct their business in an orderly manner.
The moves come after a tumultuous 10 days for the companies founded by Crispin Oddy, who was accused of sexual assault or harassment by 13 women in a Financial Times investigation.
Law firm Audi said he “strongly rejects” the allegations.
Odey Asset Management, which includes a hedge fund that managed $4.4 billion before the allegations emerged, told investors last week that it was in talks to divest some of its money, people and infrastructure.
The company’s other partners had kicked out Audi days earlier, but that wasn’t enough to stem the tide.
So far, four of Odey Asset Management’s funds have been suspended, most recently on Friday after a “significant level” of withdrawal requests.
The Financial Conduct Authority (FCA) came under pressure after it emerged that the regulator had been investigating Audi for more than two years. The House of Commons Treasury Select Committee has written to the Financial Conduct Authority (FCA) inviting it to explain how it has handled the issue.