The Financial Conduct Authority has warned Crispin Odey that it plans to take action against the hedge fund boss for "failing to act with integrity".
The warning notice was sent to Odey on September 24 and published by the FCA on Friday (November 1).
The warning notice is not a final decision and Odey will be able to challenge it.
The regulator considers that between December 24, 2021 to November 17, 2022, Odey breached the requirements of the FCA's code of conduct which required him to act with integrity, while he was at Odey Asset Management.
The warning notice said after a final written notice was given to Odey in February 2021 in relation to inappropriate behaviour, Odey Asset Management had scheduled a disciplinary hearing on the matter to assess any breaches of the notice.
However, the FCA said: "Mr Odey was due to attend the disciplinary hearing on 6 January 2022 but on 24 December 2021 he used his majority shareholding in OAM to remove the existing members of OAM’s executive committee and appoint himself as its sole member.
"On January 6, 2022, at an ExCo meeting for which he was the sole member, Mr Odey decided that the disciplinary hearing into his conduct would be indefinitely postponed since he said he was unable to conduct it with impartiality."
After a new executive committee was appointed in January 2022, Odey used his majority shareholding to remove them three months later, the notice said.
The disciplinary hearing to consider Odey's behaviour was finally held in November 2022.
The warning notice said Odey's behaviour towards OAM and the FCA "lacked candour".
It said: "He used improper means to protect his own interests and achieve his objectives; the reasons he gave for his dismissal of ExCo, and his conduct in his dealings with the FCA also support the finding that he lacks integrity."
It comes a year after Odey Asset Management started the process of winding down.
tara.o'connor@ft.com
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