Lord Roborough refused to stay at Odey Asset Management over ‘lack of trust’
Lord Roborough, a former partner at Odey Asset Management (OAM), has rejected claims made by Crispin Odey that the City watchdog directly pressured the firm’s executives to find against him.
In a legal battle against the Financial Conduct Authority (FCA), disgraced financier Odey claims the OAM executive committee was subject to “undue pressure from the FCA” when removing him from the committee for the first time, followed by allegations of inappropriate behaviour.
Taking the witness stand at the court on Friday, Lord Massey Roborough, a Conservative member of the House of Lords, said the pressure came from the advice of the firm’s lawyers and not the FCA.
However, in his written witness statement, seen by City PM, he acknowledged: “The Authority, having an investigation ongoing into the first disciplinary process, did however indirectly place pressure on us to find against Crispin.”
In October 2021, the FCA notified OAM that it was investigating the circumstances of Crispin’s first disciplinary warning for allegations of inappropriate behaviour, which culminated in a final written warning issued against Crispin.
According to Lord Roborough’s written witness statement, the committee became aware of a potential breach of Crispin’s earlier “final written warning” involving a temporary receptionist.
Odey had gone ‘beyond purely professional’
His statement noted that Odey’s conduct had gone “beyond purely professional,” and after reviewing text messages, the members concluded the relationship was “inherently flirtatious” and a clear violation of the conduct standards mandated by his previous warning.
It was revealed earlier this week in court that Odey threatened to “shut down” his eponymous hedge fund if he was dismissed by its board or it proceeded with investigations into his alleged misconduct against his wishes.
Lord Roborough, who serves as shadow minister for environment, food and rural affairs, said he resigned on 20 January 2022, primarily because he felt uncomfortable with Odey avoiding a disciplinary hearing by firing the committee.
Although Odey and former portfolio manager James Hanbury asked him to stay on as a consultant for the investment side, he refused due to a lack of trust and disputes over his compensation.
“I did not feel I had been adequately compensated for the previous year’s performance, and that led to a lack of trust that I would be in the future,” he stated.
However, Lord Roborough added that he still regarded Odey as a friend; he admitted their relationship was “strained”, and he did not return to the office after resigning.
The peer’s testimony follows the former Odey Asset Management chief executive, Tim Pearey, in the witness box this week, where his evidence to the FCA came to light, showing that he called Odey a “sex pest” and a “sociopath”.
Odey’s legal battle to overturn his £1.8m fine and ban from the financial services industry continues at the High Court for the next two weeks. Odey denies the allegations made against him.