LONDON, June 10 (Reuters) – Large banks and buyers rapidly sought to distance themselves from Odey Asset Administration after allegations of sexual misconduct by its founder, but for some within the Metropolis of London indicators of a deeper change in tradition are nonetheless scant.
The Monetary Occasions and Tortoise Media reported on Thursday that 13 girls alleged founder Crispin Odey, one among Britain’s best-known hedge fund managers, had sexually assaulted or harassed them over a 25-year interval.
Odey instructed Reuters on Thursday that the report was a rehash of an previous article and not one of the allegations have been stood up in a courtroom or an investigation. Odey was acquitted of indecent assault costs by a British court docket in 2021.
Odey Asset Administration “doesn’t recognise the image of the agency that has been painted” by the allegations, it instructed buyers in a letter seen by Reuters.
Inside hours of the report being revealed, Wall Avenue companies together with Goldman Sachs (GS.N), JPMorgan (JPM.N) and Morgan Stanley (MS.N) started reviewing their prime broking ties with Odey Asset Administration, sources aware of the matter instructed Reuters.
“We’re assured our service suppliers will proceed to work with us,” an Odey Asset Administration letter mentioned later.
By Friday, Canada Life, an asset supervisor overseeing round 40 billion kilos ($50 billion) of shopper funds in Britain, mentioned it had suspended its relationship with Odey Wealth, a personal client-focused a part of Odey Group, with speedy impact. A Canada Life spokesman confirmed the allegations reported by the FT and Tortoise have been the rationale for this resolution.
British asset supervisor Schroders (SDR.L), which oversees greater than 700 billion kilos, mentioned it had exited “residual” holdings in Odey funds “following the FT’s report of sexual misconduct allegations in opposition to Crispin Odey.”
Odey denies all wrongdoing and has no identified prison conviction. But the fast response exhibits that even a report of misconduct will face penalties within the wake of the #MeToo motion that has swept by the company, political and leisure worlds since 2017.
Trade consultants consulted by Reuters mentioned that didn’t essentially point out a significant change in tradition within the Metropolis, nevertheless.
“The speedy distancing of main banks from Crispin Odey illustrates that corporations are desperate to keep away from turning into the newest targets of cancel tradition campaigns,” mentioned Evan Nierman, CEO of New York-based disaster PR agency Crimson Banyan.
However, he added: “At current time, this seems to be an issue for Odey, versus some type of watershed #MeToo second set to engulf the broader British monetary providers business.”
In finance, an business through which girls are under-represented in senior roles, there’s a rising emphasis on enhancing environmental, social and governance requirements.
“In the end, strain from institutional buyers could be the solely path to essentially making change on these points which have such super emotional {and professional} penalties for girls and different individuals,” mentioned Megan Tobias Neely, a former hedge fund analyst.
Neely, who retrained and returned to finance as a sociologist and wrote a guide, “Hedged Out: Inequality and Insecurity on Wall Avenue,” mentioned her analysis on hedge funds had discovered a repetitive sample of retribution for girls who reported sexual harassment and discrimination.
She mentioned many ladies she interviewed mentioned they have been pushed out of companies and in some circumstances, blackballed from the whole business.
Bullying, harassment and aggression account for almost all of claims investigated by UK regulator The Monetary Conduct Authority, in line with a latest report from Monetary Information, which cited a freedom of knowledge request.
A #MeToo shift for London’s hedge fund scene would hinge on the actions of institutional gamers, like banks chopping their prime brokerage ties and buyers halting fund flows, mentioned Daniel Beunza, a professor of social research of finance at Bayes Enterprise College.
Politicians additionally play a task. Britain’s opposition Labour Social gathering plans to return 100,000 kilos in donations from Algebris founder and CEO Davide Serra following a harassment declare, a celebration official mentioned on Friday.
A London employment tribunal final month awarded a former Algebris worker over 32,000 kilos in a intercourse harassment declare in opposition to the asset administration firm.
Serra didn’t instantly return telephone calls, messages and e mail requests for remark. Algebris declined to remark.
On the coronary heart of the dialogue of range and tradition in monetary providers, is that “(practically) every thing is tolerated so long as there may be upside for the underside line now,” mentioned Yasmine Chinwala, companion at New Monetary.
“For all of the momentum, that essentially hasn’t modified,” she mentioned.
($1 = 0.7950 kilos)
Reporting by Nell Mackenzie, Sinead Cruise and Naomi Rovnick; Modifying by Dhara Ranasinghe and Rosalba O’Brien
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