By Intense Life Desires 
FCA HQ
The FCA has secured $101m (approx £76m) in compensation to UK and other non-US investors in a fund sub-managed by hedge fund firm BlueCrest Capital Management (UK) LLP (BlueCrest) and also imposed a public censure on the company.
The regulator said that between October 2011 and December 2015, BlueCrest failed to manage fairly a conflict of interest.
The conflict was created by its role in managing both an investment fund exclusively for the benefit of its partners and employees and a flagship fund available to external investors.
BlueCrest’s management approved UK-based traders being moved from the external fund to work on the internal fund, in which they were personally invested and where they “stood to benefit personally” from those decisions.
Disclosures to investors were insufficient and, at times, misleading, the FCA said. Investors were not told that a significant number of traders were moved to work on the internal fund. This then affected investors’ ability to make informed decisions.
The firm’s failure to manage fairly the conflict led to a sub-standard service for the external fund and its investors, according to the watchdog.
The FCA said: “Asset managers are trusted to make decisions for their clients. It is vital they have appropriate systems and controls in place to ensure conflicts of interest are managed fairly.”
Therese Chambers, FCA joint executive director of enforcement and market oversight, said: “This redress scheme brings a positive end to a long-running case. BlueCrest put its own interest ahead of the external fund and provided a substandard service, which meant that investors lost out.
“After many years of legal challenge, the FCA has now successfully secured a substantial $101 million for affected investors.”
The redress scheme will be overseen by BlueCrest. Affected investors will be contacted on next steps by BlueCrest or a scheme administrator if it chooses to appoint one.
• Final Notice 2025: BlueCrest Capital Management (UK) LLP.
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