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Barclays seeks to stop being corporate banker to Odey Asset Management - FT

Published 07/02/2023, 01:25 PM
Updated 07/02/2023, 02:30 PM
© Reuters. Britain's Crispin Odey gestures in a car as he leaves Westminster Magistrates Court in London, Britain September 28, 2020.  REUTERS/Hannah McKay/File Photo
BARC
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(Reuters) -Barclays is looking to terminate its corporate banking relationship with Odey Asset Management (OAM), the Financial Times reported on Sunday, predominantly due to sexual assault allegations against founder Crispin Odey.

The British hedge fund has grappled with redemptions since the FT and Tortoise Media on June 8 jointly reported allegations by 13 women that Crispin Odey had sexually assaulted or harassed them over a 25-year period.

Odey has denied the allegations.

Citing people familiar with the matter, the FT said on Sunday Barclays (LON:BARC) had told British markets regulator the Financial Conduct Authority (FCA) it wants to extricate itself from OAM, joining other financial firms which have sought to cut links.

OAM and Barclays did not immediately respond to a Reuters request for comment outside usual office hours. The FCA declined comment.

Asset management companies Schroders (LON:SDR) and Canada Life have cut ties with the hedge fund, citing the allegations, while the FT reported on Thursday that the FCA had been pressing investment platforms including AJ Bell, Hargreaves Lansdown and Halifax for continuing to offer funds from OAM to investors.

FT also reported earlier that the FCA had restricted the movement of cash and assets from OAM to restore order at the firm.

© Reuters. Britain's Crispin Odey gestures in a car as he leaves Westminster Magistrates Court in London, Britain September 28, 2020.  REUTERS/Hannah McKay/File Photo

OAM's prime brokers, which include Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM) and Morgan Stanley (NYSE:MS), have also been reviewing their relationship with the hedge fund.

Letters to OAM investors last week showed the manager has proposed to restructure two of its key funds as part of efforts to extract Crispin Odey from the business after the assault allegations.

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