Morgan Stanley breaks ties with Crispin O’Day

Morgan Stanley on Thursday decided to sever ties with Crispin O’Day’s O’Day Asset Management in the wake of an investigation by the Financial Times that revealed how the hedge fund manager got away with sexual harassment allegations for decades.

The bank has begun the process of terminating its prime broking relationship with Oday, according to people familiar with the situation. Morgan Stanley and ODE Asset Management declined to comment.

The decision came after the publication on Thursday of a Financial Times investigation which found O’Day had sexually assaulted or assaulted 13 women over the past 25 years. Eight women involved in the investigation said they were sexually assaulted by him. A law firm representing O’Day said it “vigorously disputed” the allegations.

Prime brokers provide a variety of services to their hedge fund clients, including stock lending, leverage and trade execution. They also connect hedge funds with potential investors such as pension funds, foundations and endowments.