The UK’s financial regulator is investigating the hedge fund of the multimillionaire Conservative donor Crispin Odey after a number of female employees made allegations of sexual misconduct against him. The Financial Conduct Authority (FCA) is understood to be widening an existing investigation into allegations of misconduct at his firm, Odey Asset Management (OAM), after the Financial Times reported allegations on Thursday that Odey had abused or harassed 13 women over decades. The FT first reported that the FCA was expanding its investigation to consider potential non-financial misconduct by Odey. Odey confirmed he had been previously “cross-examined” by the FCA over allegations in an investigation he claimed had been closed. The watchdog said it was unable to comment, but sources close to the regulator said the scope of an investigation changes depending on the evidence. Two of the world’s largest investment banks, Morgan Stanley and JP Morgan, are in the process of cutting their ties with OAM in response to the claims. The FT reported allegations from eight women who accused Odey of sexually assaulting them. The alleged incidents, which included a claim that he masturbated on a female entrepreneur, were said to have occurred between 1998 and 2021. Approached by the Guardian for comment, Odey said the allegations had not been proven in court and he had done nothing illegal. “I have been cross-examined by the FCA,” he said. “The one thing I have not been is hiding anything. I have kept everybody apprised of any accusations.” Odey, 64, claimed the FT report was a “rehash” of previous reporting, and said the allegations within it were either untrue, or that his relations with women had at the time been “consensual”. A law firm representing the hedge fund manager has previously told the FT that Odey “strenuously disputed” the accusations and said the newspaper had a “preordained agenda”. In 2020, Odey was accused of assaulting a female investment banker at his London home in 1998, but was later cleared. The FT investigation also alleged that senior executives at OAM knew about some of the allegations for up to 16 years before the firm launched a formal investigation into Odey’s conduct. OAM declined to comment. A lawyer for OAM, which Odey founded and majority owns, has said the firm has compulsory training on diversity, equity and inclusion for all staff. “It takes staff relations very seriously,” the lawyer said. Morgan Stanley and JP Morgan declined to comment, but sources close to the banks said their decisions to cut their ties with OAM were a direct response to the allegations. Odey made political donations of more than £1.7m between 2007 and 2019, according to Electoral Commission filings. He and his hedge fund donated £1.3m to groups campaigning for Brexit at about the time of the EU referendum. He has given about £350,000 to the Conservatives, and £10,000 directly to former prime minister Boris Johnson.