After nearly a decade-long legal battle, Britain’s Financial Conduct Authority (FCA) has secured $101 million in redress for investors affected by BlueCrest Capital Management’s conflict of interest — marking the conclusion of one of the UK’s most closely watched fund governance cases.
🔹 Background
Between 2011 and 2015, BlueCrest — co-founded by billionaire Michael Platt — was found to have favored internal funds for partners and employees over its flagship external investor fund, providing a “substandard service” and failing to manage conflicts fairly, according to the FCA.
🔹 Resolution
While the redress is far below the $700 million and £41 million penalty the regulator initially pursued, the public censure and settlement signal a strong regulatory stance on fiduciary duty and transparency.
“BlueCrest put its own interest ahead of the external fund and provided a substandard service,” said Therese Chambers, Co-Head of Enforcement at the FCA.
🔹 Aftermath & Implications
- The redress applies to non-U.S. investors, with U.S. clients already compensated under a separate scheme.
- BlueCrest did not accept the FCA’s findings, but agreed to settle “to draw a line under the matter.”
- The Court of Appeal reinstated the case last year after BlueCrest attempted to strike it out; the firm later withdrew its Supreme Court appeal.
💡 Industry Insight:
The case underscores the increasing scrutiny of hedge fund governance — particularly around conflicts of interest, allocation of trading resources, and fair treatment of external investors. Regulators across the UK, EU, and U.S. are tightening oversight, reinforcing that performance alone does not excuse governance breaches.