The broking operations of Goldman Sachs (NYSE:GS), JPMorgan and Morgan Stanley (NYSE:MS) are reassessing their relationships with Odey Asset Management amid sexual misconduct allegations against the firm's founder, Crispin Odey, Reuters has reported, citing sources familiar with the matter.
The allegations, stemming from a joint investigation by the Financial Times and Tortoise Media, include accusations from 13 women over a span of 25 years.
Odey, acquitted of indecent assault charges in 2021, denied the credibility of the allegations and asserted no client has requested fund withdrawals since the news broke, Reuters said.
The potential pullback by prime brokers, which facilitate hedge funds' investment through loans, could substantially impact the firm's operations and returns, according to industry experts.
According to Reuters, the Financial Conduct Authority (FCA), while not commenting on specific firms, stated they seriously consider non-financial misconduct allegations and expect appropriate governance procedures.
*Proactive is seeking clarifying comment about the reports.