Investment platforms grilled for continuing to offer Odey funds

Investment platforms such as AJ Bell, Hargreaves Lansdown and Halifax are being grilled for offering Odey Asset Management funds despite the crisis at the firm.

The Financial Conduct Authority (FCA) has contacted the companies about their offerings branded under Odey’s name, as well as under Brook – the name given to funds managed by other partners at the hedge fund.

The watchdog has asked them to explain how this is in the best interests of clients given issues at Odey Asset Management and is quizzing them about the level of buying and selling of Odey funds.

It is also looking at the transfer of any funds sold by the hedge fund to third parties, according to the Financial Times.

Odey Asset Management has been in crisis since allegations of sexual misconduct against founder Crispin Odey by 13 women, sparking a rush of withdrawals by clients.

It managed around £3.5billion in assets before the scandal and has said it was in ‘advanced discussions’ to break itself up and transfer funds and staff to rivals.

Investment platforms such as AJ Bell allow DIY investors to pick which funds they wish to invest in. 

Although they can restrict funds, it is usually an exceptional move.