GFSC won't comment on Odey scandal

Tuesday 13 June 2023

The Guernsey Financial Services Commission has refused to comment on speculation over the future of the Odey Group, as it tries to cut off its owner who is facing a series of allegations of sexual misconduct.

Odey Asset Management, Odey Wealth Management and Brook Asset Management are all part of the Odey Group.

Odey Wealth Management is registered with the GFSC. It launched in 2008 in Guernsey, as part of the Odey Group which itself was established in 1991.

Odey Wealth's primary focus is managing portfolios for offshore private clients, while Odey Asset manages assets on behalf of institutional investors, private banks and family offices. 

Pictured: Odey Wealth Management is registered in Guernsey but the GFSC said it won't comment on matters concerning firms licensed here.

The Group has been in the spotlight this week as its founder Crispin Odey has denied allegations of misconduct.

Reuters has reported that the financier is leaving the Group, while Bloomberg has reported that the Group is making moves to protect itself from the developing scandal.

The Financial Conduct Authority is already looking into the Group's activities but the GFSC will not be drawn on whether it is following in the footsteps of the UK's regulator.

In response to a query over the scandal surrounding the Odey Group, the GFSC told Express that it is not right for it to comment.

“Generally speaking, the Commission does not seek to regulate those firms which it licences through interactions in the public domain. To do so would undermine the ability, even duty, of firms to talk candidly and confidentially about their businesses with the Commission. In the vast majority of cases the Commission will deal with any concerns it may have about a firm through private supervisory discourse with the firm. 

"With respect to the firm about which you enquire we have no comment to make.”

Pictured: The GFSC won't comment on the Odey Group, despite it making headlines across the world.

Odey Asset Management is believed to have held $4.8 billion in assets under management in September last year.

In a bid to move away from the current scandal, it is expected that Odey Asset Management will change its name while Freddie Neave has been appointed to oversee the Odey European Inc (OEI) and OEI Mac funds, with James Hanbury assuming leadership of the LP Odey Opus Fund.

Oliver Kelton has taken charge of the Odey Pan European Fund while the Odey Swan Fund will be taken on by Mr Neave on an interim basis.

Clients including JPMorgan and Goldman Sachs are said to be "continuing to review their prime-broking relationships with the company". Reuters has also reported that Morgan Stanley declined to comment while UBS "did not immediately respond". 

The Odey Group is not believed to be considering imposing exit restrictions on investors if they choose to leave at this time. The Financial Times and Reuters have both reported that restrictions and gating were discussed as part of "emergency measures to manage an investor exodus".

However, yesterday Reuters reported that a spokesperson for Odey Asset Management had said that: "All funds are open today as per usual business, and we are not considering gating any funds."