Updated: Jan 20
On 22nd December 2021 the FCA announced it will fine hedge fund BlueCrest Capital Management (UK) LLP for conflict of interest failings. The financial penalty imposed on the firm amounts to £40,806,700.
From October 2011 to December 2015 the FCA considered that BCMUK failed to manage fairly a conflict of interest created by allocating portfolio managers working on an external fund to an internal fund that was open solely to company partners and employees.
The FCA determined that BCMUK's controls and systems did not manage the risk these portfolio managers could be allocated in a way that favoured investors in the internal fund. This did in fact result in the external fund and external investors receiving a sub standard investment management service.
The regulator also announced it was requiring BCMUK to redress the clients who had suffered losses as a result of its failings.
The findings are provisional however as BCMUK has referred the case to a further Tribunal for determination.