The UK's Financial Conduct Authority has confirmed ongoing investigations into both Crispin Odey and Odey Asset Management, which were launched in mid-2021.

Writing in response to a letter from the Treasury Committee, FCA chief executive Nikhil Rathi said the regulator was investigating whether Odey was a "fit and proper person to work in financial services" and whether he has failed to comply with FCA rules on integrity, due skill, care and diligence.

Treasury Committee questions FCA oversight of Crispin Odey and Odey AM

He noted the eponymous founder had not held a senior manager role since 2020 and had been removed as a certified individual in June 2023, at the request of Odey AM and Odey Wealth Management.

Rathi also confirmed Odey AM was under investigation for possible contraventions of the regulator's principles for business and for "failing to conduct its affairs with due skill, care and diligence", and for "failing to take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems and controls".

He added the investigation also sought to establish whether Odey AM had failed or risked failing to have a "functional and compliant governance structure".

Rathi noted that given the ongoing nature of the investigations, he was limited in what he could share, but added the nature and scope of the investigation is open to change.

Supervision of Odey AM

While the investigations were opened in mid-2021, Rathi said the regulator had been engaged in "intensive" supervision of Odey AM since 2020.

He said the focus of supervisors had most recently been on "ensuring adequate investor and consumer protections" as the firm considers next steps, noting the regulator's action to prevent firms disposing assets.

Crispin Odey legal action

Rathi confirmed lawyers acting on behalf of Crispin Odey had filed a letter before action with the regulator when it first opened its investigation, to which the FCA "responded robustly".

He added court proceedings were not commenced, but the regulator would consider legal arguments "presented at any stage by those under investigation, as should any enforcement agency".

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However, he clarified: "A decision to investigate and on an investigation's scope is driven by circumstances suggesting serious misconduct and the available evidence, without fear or favour."

Rathi concluded by noting regulator action is not intended to be a replacement or alternative to a police investigation or criminal prosecution, and confirmed an investigation may need to be put on hold while police consider relevant matters.

"As some of the allegations reported in the press are potentially criminal in nature, we have been in contact with the police," he said. "Any decision on whether or not to investigate is a matter for them. I would encourage anyone who may be a victim of, or witness to, crime to consider going to the police, which has specialist units to investigate sexual offences and dedicated support for victims of sexual offences. We also have processes in place to share information with the police and other law enforcement partners.

"Finally, it is important I reassure anyone with information or concerns about a person working in financial services or a firm we regulate that they can come to us knowing we will treat them sensitively, protect their identity and take seriously the information they provide."

Rathi is due to answer questions at the Treasury Committee on 19 July.