Lord Roborough Contradicts Odey's Allegations of Regulatory Pressure
Lord Roborough, a former partner at Odey Asset Management (OAM), has firmly rejected claims by Crispin Odey that the City watchdog directly pressured the firm's executives to rule against him. In a high-profile legal battle against the Financial Conduct Authority (FCA), the disgraced financier Odey alleges that OAM's executive committee faced "undue pressure from the FCA" when removing him from the committee initially, followed by accusations of inappropriate behavior.
Testimony Reveals Legal Advice as Source of Pressure
Taking the witness stand at the High Court on Friday, Lord Massey Roborough, a Conservative member of the House of Lords, clarified that the pressure originated from the firm's lawyers' advice, not from the FCA itself. However, in his written witness statement, obtained by City AM, he acknowledged a nuanced reality: "The Authority, having an investigation ongoing into the first disciplinary process, did however indirectly place pressure on us to find against Crispin."
This admission highlights the complex interplay between regulatory oversight and corporate decision-making in the financial sector.
Background of the Disciplinary Proceedings
In October 2021, the FCA notified OAM that it was investigating the circumstances surrounding Crispin Odey's first disciplinary warning for allegations of inappropriate behavior, which ultimately led to a final written warning. According to Lord Roborough's statement, the committee later became aware of a potential breach of this "final written warning" involving a temporary receptionist.
His testimony noted that Odey's conduct had escalated "beyond purely professional," and after reviewing text messages, committee members concluded the relationship was "inherently flirtatious" and a clear violation of the conduct standards mandated by his previous warning.
Odey's Threats and Lord Roborough's Resignation
Earlier this week, court revelations showed that Odey threatened to "shut down" his eponymous hedge fund if he was dismissed by its board or if investigations into his alleged misconduct proceeded against his wishes. Lord Roborough, who serves as shadow minister for environment, food and rural affairs, stated he resigned on 20 January 2022, primarily due to discomfort 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, citing a lack of trust and disputes over 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 explained.
Strained Relationships and Ongoing Legal Battle
Despite his refusal to continue working with OAM, Lord Roborough added that he still regarded Odey as a friend, though he admitted their relationship was "strained," and he did not return to the office after resigning. His testimony follows that of former Odey Asset Management chief executive Tim Pearey, who earlier this week described Odey as a "sex pest" and a "sociopath" in evidence to the FCA.
Odey's legal battle to overturn his £1.8 million fine and ban from the financial services industry continues at the High Court for the next two weeks. Odey denies all allegations made against him, setting the stage for a protracted and contentious courtroom drama.
