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Morgan Stanley cuts ties with Crispin Odey after sexual assault allegations Financial watchdog investigating Crispin Odey after sexual assault allegations
(32 minutes later)
Broking relationship with hedge fund to be severed after news report details alleged incidents, which Odey denies Morgan Stanley also cuts ties with Tory donor’s hedge fund over report of alleged incidents, which he denies
The investment banking company Morgan Stanley is to cut its relationship with the multimillionaire hedge fund manager and Conservative donor Crispin Odey after allegations of sexual misconduct were made by multiple female employees. The UK’s financial regulator is investigating the hedge fund of the multimillionaire Conservative donor Crispin Odey after a number of female employees made allegations of sexual misconduct against him.
Morgan Stanley is cutting its prime broking relationship with his firm, Odey Asset Management (OAM), after the Financial Times on Thursday reported allegations that Odey had abused or harassed 13 women over decades. The Financial Conduct Authority (FCA) is understood to be widening an existing investigation into allegations of misconduct at his firm, Odey Asset Management (OAM), after the Financial Times reported allegations on Thursday that Odey had abused or harassed 13 women over decades.
JP Morgan is also understood to be reviewing its relationship with OAM in light of the FT claims. The FT first reported that the FCA was expanding its investigation to consider potential non-financial misconduct by Odey.
Odey confirmed he had been previously “cross-examined” by the FCA over allegations in an investigation he claimed had been closed.
The watchdog said it was unable to comment, but sources close to the regulator said the scope of an investigation changes depending on the evidence.
Two of the world’s largest investment banks, Morgan Stanley and JP Morgan, are in the process of cutting their ties with OAM in response to the claims.
The FT reported allegations from eight women who accused Odey of sexually assaulting them. The alleged incidents, which included a claim that he masturbated on a female entrepreneur, were said to have occurred between 1998 and 2021.The FT reported allegations from eight women who accused Odey of sexually assaulting them. The alleged incidents, which included a claim that he masturbated on a female entrepreneur, were said to have occurred between 1998 and 2021.
Odey, 64, denies the allegations. “This is a rehash of an old article and none of the allegations have been stood up in a courtroom or an investigation,” Odey told Reuters on Thursday. Approached by the Guardian for comment, Odey said the allegations had not been proven in court and he had done nothing illegal. “I have been cross-examined by the FCA,” he said. “The one thing I have not been is hiding anything. I have kept everybody apprised of any accusations.”
Odey, 64, claimed the FT report was a “rehash” of previous reporting, and said the allegations within it were either untrue, or that his relations with women had at the time been “consensual”.
A law firm representing the hedge fund manager has previously told the FT that Odey “strenuously disputed” the accusations and said the newspaper had a “preordained agenda”.A law firm representing the hedge fund manager has previously told the FT that Odey “strenuously disputed” the accusations and said the newspaper had a “preordained agenda”.
The FT investigation also alleged that senior executives at OAM knew about some of the allegations for up to 16 years before the firm launched a formal investigation into Odey’s conduct. In 2020, Odey was accused of assaulting a female investment banker at his London home in 1998, but was later cleared.
A lawyer for OAM, which Odey founded and majority owns, has said the firm has compulsory training on diversity, equity and inclusion for all staff. “It takes staff relations very seriously,” the lawyer said. The FT investigation also alleged that senior executives at OAM knew about some of the allegations for up to 16 years before the firm launched a formal investigation into Odey’s conduct. OAM declined to comment.
Odey did not respond to requests for comment from the Guardian. OAM declined to comment to the Guardian.
Morgan Stanley declined to comment on its decision to cut ties with Odey, but a source said the bank was understood to have already started cutting its ties with him as a direct response to the allegations. JP Morgan declined to comment.
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Odey told Reuters that Morgan Stanley’s decision to cut its prime brokerage relations – through which it lends money to the hedge fund to facilitate investments – was “a massively quick reaction to an allegation by the FT”. A lawyer for OAM, which Odey founded and majority owns, has said the firm has compulsory training on diversity, equity and inclusion for all staff. “It takes staff relations very seriously,” the lawyer said.
The City watchdog, the Financial Conduct Authority, is monitoring OAM in relation to previous allegations of sexual misconduct against Odey. Morgan Stanley and JP Morgan declined to comment, but sources close to the banks said their decisions to cut their ties with OAM were a direct response to the allegations.
Odey made political donations of more than £1.7m between 2007 and 2019, according to Electoral Commission filings. He and his hedge fund donated £1.3m to groups campaigning for Brexit at about the time of the EU referendum.
He has given about £350,000 to the Conservatives, and £10,000 directly to former prime minister Boris Johnson.