Several UK investment platforms have faced probes from the Financial Conduct Authority for continuing to offer access to Odey Asset Management funds to retail investors, according to reports.
Seven funds from Odey AM and subsidiary Brook Asset Management have been suspended following allegations of sexual misconduct against founder Crispin Odey.
Odey AM in 'advanced talks' to transfer European funds to SW Mitchell Capital
People familiar with the situation told the Financial Times that AJ Bell, Hargreaves Lansdown and Halifax had been contacted by the FCA regarding retail investor access to such funds.
The FCA has been seeking explanations from platforms regarding how continued access to the Odey AM and Brook AM funds was in the best interest of their clients, considering the issues the asset manager has been facing since the publication of the FT investigation earlier this month.
Along with the seven suspended funds, the Odey Swan fund is also in the process of being wound up, limiting retail investors' ability to withdraw any of their money invested.
Some of the non-suspended funds, however, remain available for purchase on several investment platforms.
The FCA and Halifax have been contacted for comment, while AJ Bell and Hargreaves Lansdown declined to comment on the matter.
Crispin Odey no longer regulated to deal directly with clients
A spokesperson for interactive investor told Investment Week that, while they do not comment on conversations with the FCA, the platform's policy is to remain ‘neutral' when "funds continue to be run according to their mandate and the manufacturer indicates that its target market is compatible with retail investors".
The spokesperson added: "We aim to respect the part we play as a ‘neutral' intermediary between the product manufacturer and the customer in neither endorsing or censoring retail investment products."
Odey AM announced earlier this week it was in "advanced talks" to transfer four of its European equity funds to boutique SW Mitchell Capital.
Recent analysis by Investment Week has revealed some of the Odey AM and Brook AM funds remain open despite experiencing outflows as high as 33% in the week following the allegations.
