The Financial Conduct Authority (FCA) has moved to restrict the movement of cash and assets from Odey Asset Management in an effort to contain the situation following the allegations of sexual misconduct levelled at former boss Crispin Odey (pictured).
According to reports from the Financial Times, the FCA will publish details of the voluntary restrictions later today (19 June).
Such restrictions are expected to include preapproval for transactions above a certain level, and the conservation of cash and assets for the normal running of the business, someone familiar with the situation told the FT.
According to one of the FT’s sources, it is normal to impose restrictions on firms going through difficulties to ensure that they could continue to run their businesses in an orderly way.
The restrictions have also been agreed by associated firm Odey Wealth Management
The move comes after a fourth Odey fund suspended trading last week. The firm has admitted to a “sizeable level” of withdrawal requests since the allegations, and the Special Situations, Brook Developed Markets, LF Odey Portfolio and Brook Absolute Return funds each curtailing trading.
The Odey Swan fund will also close for good, having been open to investors for a decade.
Events have spiralled since the FT released a report on 8 June detailing allegations of sexual assault or harassment made by 13 women against Odey over a period of 25 years. Odey denies the allegations.