JP Morgan terminates relationship with Odey Asset Management - reports

JP Morgan has followed Goldman Sachs, Exane and Morgan Stanley in terminating its relationship with Odey Asset Management following allegations of sexual misconduct against the firm's founder, Crispin Odey. 

According to a report by the FT, the bank served a notice on both its prime broking and custody agreements with the firm, people familiar with the situation said, becoming the latest of the big banks to sever ties with Odey AM. 

JP Morgan was one of Odey AM's key relationships. As it is also a custodian of its assets, the firm now needs to find another party to take on these assets as a depositor, sources told the newspaper. 

Odey AM to close Swan as subsidiary Brook AM gates Developed Markets fund

The move follows Odey Asset Management's suspension of the €117m Swan fund as it begins the process of closing the vehicle, while the firm's subsidiary Brook Asset Management has suspended redemption requests for the €205m Developed Markets fund and £503m Absolute Return fund.

The firm's executive committee removed Crispin Odey as a member of the partnership on 10 June and redistributed management of his funds across the remaining team, according to an executive committee statement.

Odey AM said that following the removal of Crispin Odey, it is "in the best interests of shareholders" to close the Swan fund, with proceeds from the liquidation returned to shareholders.

Odey AM denies plans to gate funds in wake of sexual misconduct allegations

In a letter to investors, the firm also said the Brook Developed Markets fund had been gated after redemption requests had exceeded 10% of net asset value. 

In a separate letter, Link Fund Solutions, the authorised corporate director of the Brook Absolute Return fund, said the suspension had been enacted "in the best interests of all investors" following consideration of "all relevant circumstances regarding Odey Asset Management".

This comes after an Odey AM spokesperson had said on Monday (12 June) that "all funds are open today as per usual business, and we are not considering gating any funds".