The UK FCA has announced its decision to impose a £40,806,700 financial penalty on BlueCrest Capital Management (UK) LLP (BCMUK).
The UK financial markets regulator’s fine follows its findings that from 1 October 2011 to 31 December 2015, the hedge fund did not manage properly an instance of conflict of interest. The alleged misconduct was a result of allocating portfolio managers working on an external fund, open to investors outside BlueCrest, to an internal fund, open only to its partners and employees.
The regulator said:
The FCA found that BCMUK’s systems and controls did not manage the risk that portfolio managers could be allocated in a way that favoured investors in the internal fund over those of the external fund. This resulted in a sub-standard investment management service being provided to the external fund and its investors.