THE CITY watchdog said today that firms which tolerate sexual harassment are also likely to have other problems with decision making and risk management.
In the wake of the investigation into Odey Asset Management and its founder Crispin Odey, the Financial Conduct Authority said in a letter to the Treasury Select Committee: “Both individual fitness and corporate culture play significant roles in the risk a firm and its staff pose to our objectives. It is why the FCA has taken a forthright stance and leading role among UK and international regulators on nonfinancial misconduct.”
Odey faces allegations from 13 women about misconduct over several years – he denies the allegations, but his firm is in disarray with banks declining to act as brokers and funds being sold off to rivals.
The FCA is looking into whether Odey is a “fit and proper person” to work in financial services. A ban from the City is plainly a distinct possibility.
The allegations against him first surfaced from an investigation by the Financial Times.
FCA boss Nikhil Rathi writes to Treasury Select Committee chair Harriett Baldwin MP: “It is unacceptable that women should still be made to feel frightened for their safety at work and afraid for their careers when they raise concerns. I have been deeply moved to read the testimony of victims of sexual misconduct and I want to thank those who speak out, often in incredibly difficult circumstances. It should not require, however, the bravery of a few or the professional work of investigative journalists for a culture of decency to prevail.”
The FCA letter reveals that it receives around 1000 whistleblowing disclosures a year, of which around three per quarter relate to allegations of sexual misconduct.
On Odey, Rathi adds: “The current scope of the investigation into Mr Odey focuses on allegations that he dismissed OAM’s Executive Committee for an improper purpose. We are investigating whether Mr Odey is a fit and proper person to work in financial services and whether Mr Odey has failed to comply with the FCA’s conduct rules relating to integrity and acting with due skill, care and diligence. Mr Odey has not held an approved senior manager role since 2020. His position as a certified individual was removed, at OAM and Odey Wealth Management’s request, in June this year.”
