FCA imposes a £40.8 million fine on Hedge Fund BlueCrest Capital

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.


In addition, the UK regulator also requires BCMUK to pay redress to clients who have suffered loss as a result of its failings.

BlueCrest has challenged the FCA’s decision and has referred the case to the Upper Tribunal, which will determine the appropriate action.

The FCA added:

The findings in the Decision Notice are provisional and only reflect the FCA’s views at this stage since BCMUK has yet to make representations.

Earlier in December, the UK financial market supervisor imposed a £264.8 million fine on NatWest for AML compliance failures.


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