Finance
UK watchdog secures $101 million redress for BlueCrest fund investors
Published by Global Banking & Finance Review®
Posted on October 14, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 14, 2025
2 min readLast updated: January 21, 2026
The FCA secured $101 million in redress for BlueCrest fund investors, ending a prolonged legal battle over conflict of interest issues.
By Kirstin Ridley
(Reuters) -Britain's Financial Conduct Authority on Tuesday secured $101 million in redress for investors in a fund sub-managed by BlueCrest Capital Management and imposed a public censure on the investment firm, marking an end to a drawn-out battle.
The FCA said BlueCrest, the investment firm co-founded by billionaire Michael Platt, had failed to deal fairly with a conflict of interest when managing an investment fund for the benefit of its partners and employees and a flagship fund available to external investors between 2011 and 2015.
The level of redress is a fraction of the estimated $700 million the markets regulator had initially sought, alongside a proposed 41 million-pound penalty. But the deal brought a positive end to a long-running case, the FCA's co-head of enforcement, Therese Chambers, said.
"BlueCrest put its own interest ahead of the external fund and provided a substandard service, which meant that investors lost out," she noted.
A spokesperson for BlueCrest said the firm did not accept the findings set out by the FCA.
But they added: "Given the significant amount of time that has elapsed since the events at issue and in order to draw a line under the matter, BlueCrest has agreed a settlement with the FCA."
The redress is for non-U.S. investors, who were not eligible for compensation under a similar U.S. scheme.
BlueCrest had attempted to strike out the FCA's case but the Court of Appeal reinstated the proposal last year. BlueCrest has withdrawn a subsequent appeal to the UK Supreme Court.
(Reporting by Kirstin Ridley in London and Yamini Kalia in BengaluruEditing by Shinjini Ganguli, Bernadette Baum and Frances Kerry)
The Financial Conduct Authority (FCA) is a regulatory body in the UK responsible for overseeing financial markets and protecting consumers by ensuring that financial firms operate fairly.
A conflict of interest occurs when an individual or organization has competing interests or loyalties that could potentially influence their decisions or actions in a way that is not impartial.
Investment redress refers to compensation provided to investors who have suffered financial losses due to misconduct or regulatory breaches by financial firms.
Investment funds are pooled resources from multiple investors that are managed collectively to invest in various assets, such as stocks, bonds, or real estate.
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