Crispin Odey fails to overturn UK financial services ban

The Upper Tribunal has upheld a Financial Conduct Authority prohibition preventing Crispin Odey from working in UK financial services and reduced his fine to £1.5 million, the tribunal said.

Judges found Odey had shown reckless disregard for corporate governance and regulatory obligations at the hedge fund he founded. The tribunal confirmed the ban on his involvement in UK regulated activities and lowered the penalty from £1.8m after taking mitigating factors into account.

The proceedings focused on Odey’s response to internal disciplinary action over allegations of sexual harassment by female employees, rather than on the allegations themselves. The panel concluded he twice dismissed the firm’s board to try to block a disciplinary hearing, conduct the tribunal described as lacking integrity and driven by self-interest and self-preservation. The judges said those actions risked creating a culture in which staff might be reluctant to raise concerns.

A three‑week hearing in March examined Odey’s handling of the allegations, company records, communications with investors and his interactions with the regulator. The tribunal found contradictions in his evidence and concluded he had not demonstrated a full appreciation of the seriousness of the conduct that led to the FCA’s action. The ruling noted some co‑operation with the regulator when setting the reduced fine.

The FCA said it welcomed the tribunal’s decision. Therese Chambers, the regulator’s joint executive director of enforcement and market oversight, described Odey’s behaviour as acting as though he could operate without consequences and seeking to protect himself rather than follow the rules.

Odey has two weeks to seek permission to appeal the judgment and continues to contest the sanctions imposed by the regulator.

Odey left the firm that carried his name three years ago after publication of allegations of sexual harassment and assault. He has settled separate personal injury claims brought by five women and dropped a libel action. He is known for large contrarian investment bets, including short positions against UK banks during the 2008 financial crisis. The tribunal’s decision will restrict his ability to return to regulated roles in the UK.