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 suspended over allegations of sexually inappropriate behaviour.
The FCA will publish details on Monday of the voluntary restrictions agreed with Odey Asset Management, two people familiar with the situation told the Financial Times.
The restrictions, which were also agreed by associate firm Odey Wealth Management, will require both cash and assets to be kept in order for their businesses to function normally.
One of the people said the FCA would require prior approval for transactions above a certain level other than in the normal course of business.
The 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 impose restrictions on firms going through “difficulties” to ensure they could continue to run their businesses in an orderly manner.
The moves follow a turbulent 10 days for the business, founded by Crispin Oddie, who was accused of sexually assaulting or harassing 13 women in an investigation published by the FT.
Odey’s law firm said he “vigorously disputes” 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 assets, people and infrastructure.
The firm’s other partners had ousted Audi days earlier, but that wasn’t enough to stem the tide.
Four of Odey Asset Management’s funds have been suspended so far, the latest on Friday after a “significant level” of withdrawal requests.
The FCA was under pressure after it emerged the regulator had been investigating Odey for more than two years. The House of Commons Treasury Select Committee has written to the FCA urging it to explain how it handled the affair.