The Financial Conduct Authority has received 43 reports by whistleblowers over sexual harassment within financial services in the past five years.
The news comes amid the fallout from a Financial Times article detailing allegations of sexual assault and harassment by 13 women levelled against hedge fund founder Crispin Odey.
Partners at Odey Asset Management are trying to rehouse funds with other asset managers after investors pulled money from its funds, as well as funds run by a subsidiary, Brook Asset Management.
Caroline Field, partner at Fox & Partners, said there is often a problem in some fund businesses where there is often a concentration of power with one or a small group, with limited accountability and fear of speaking up.
Crispin Odey fired the executive committee of OAM when they tried to reign the company’s founder in after launching a formal investigation into his behaviour.
Field said it is essential that financial services firms, including owner managed businesses like OAM, have effective corporate governance controls.“One person at the top calling the shots, without effective processes to hold these individuals to account, as well as a culture which tolerates misconduct completely undermines the purpose of an oversight function,” she said.
“Firms must have measures in place to prevent victimisation and those blowing the whistle must be empowered to do so without fear of retribution.”
Earlier this week, MPs asked the FCA to explain its investigation into OAM after “deeply troubling” allegations were made against its founder.
Harriett Baldwin, chairperson of the Treasury Committee, wrote to Nikhil Rathi, the chief executive of the FCA, demanding information about the regulator’s supervision and engagement with the firm.
The FCA has been contacted for comment.
sally.hickey@ft.com
