The UK financial watchdog has defended its decision to fine and ban Crispin Odey, telling London’s Upper Tribunal that the former hedge fund boss had been shown to be "capable of threats, distortion of facts and falsification". In closing arguments, the FCA’s lawyer said Odey sought to "create a false reality in which he was a victim" as he tried to justify firing senior executives to stop them disciplining him over sexual harassment allegations.

The regulator imposed a £1.8mn fine and a permanent ban from financial services, arguing Odey had "repeatedly violated" basic ethical norms and was not "fit and proper" to work in the industry. Dozens of sexual harassment allegations by female staff at Odey Asset Management have aired during the trial, alongside accusations of falsifying company minutes, misleading investors, and bullying colleagues. The case has brought down a once-prominent figure who made his name betting against British banks in the 2008 financial crisis.

Odey’s lawyer accused the FCA of trying to bring a sexual harassment case "by the back door" and urged judges to ignore the "lurid and prejudicial detail" of allegations against him. Last month, Odey dropped his £79mn libel claim against the Financial Times over its reporting of sexual misconduct allegations. The tribunal’s ruling will determine whether the former Conservative Party donor remains permanently excluded from the financial sector.