FCA restricts motion of property by Odey’s hedge fund

The UK’s Monetary Conduct Authority has restricted the motion of money and property from Odey Asset Administration in a bid to revive order on the hedge fund after its founder Crispin Odey was ousted over allegations of sexual impropriety.

The FCA will publish particulars on Monday of voluntary restrictions agreed with Odey Asset Administration, two folks aware of the state of affairs informed the Monetary Instances.

The restrictions, which have additionally been agreed by an related agency, Odey Wealth Administration, would require each to preserve money and property for the conventional working of their companies.

One of many folks stated the FCA would require preapproval for transactions above a sure stage, aside from within the regular course of enterprise.

The FCA declined to remark, as did Odey Asset Administration and Odey Wealth Administration.

One particular person aware of the regulator’s protocols stated it was regular to impose restrictions on companies going by way of “difficulties” to make sure that they may proceed to run their companies in an orderly manner.

The strikes observe a tumultuous 10 days for the companies based by Crispin Odey, who was accused of sexual assault or harassment by 13 ladies in an investigation revealed by the FT.

Odey’s legislation agency has stated he “strenuously disputes” the allegations.

Odey Asset Administration, which features a hedge fund that had $4.4bn beneath administration earlier than the allegations emerged, informed buyers final week that it was in talks to shed a few of its funds, folks and infrastructure.

The agency’s different companions had ousted Odey days earlier, however that was not sufficient to stem the tide.

Thus far, 4 of Odey Asset Administration’s funds have been suspended, the newest on Friday after a “sizeable stage” of withdrawal requests.

The FCA has come beneath stress after it emerged that the regulator had been investigating Odey for greater than two years. The Home of Commons Treasury choose committee has written to the FCA calling on it to elucidate the way it dealt with the affair.

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