Beleaguered fund manager Odey Asset Management has been restricted from selling its assets by regulators to shore up its balance sheet in the wake of the withdrawal of funds flowing misconduct allegations against its founder.
The Financial Conduct Authority said the hedge fund “must not, other than in the ordinary course of business, or without the prior written consent of the authority, in any way dispose of, withdraw, transfer, deal with or diminish the value of any of its own assets”.
In a letter to clients last week, the group said it was in “advanced discussions” to transfer funds and staff to rival asset managers.
Odey has been hit by a wave of fund withdrawals since the FT reported on allegations from 13 women against Crispin Odey, the firm's founder, two weekends ago.
He denies any wrongdoing but has since left the business.
No details on fund withdrawals have been released by the hedge fund but several of its funds have been ‘gated’, a situation where clients can no longer remove money.