BlueCrest Loses Bid to Block $700 Million Investor Payout
- London ruling paves way for potential compensation bill
- Court overturned lower court findings in dispute over fund
The Financial Conduct Authority (FCA) headquarters in London.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Michael Platt’s investment firm BlueCrest Capital Management is back on the hook for $700 million in compensation to investors for favoring its staff in an internal fund, after losing a court fight with the UK’s financial regulator.
London appeal judges on Tuesday overturned a lower court finding that the Financial Conduct Authority had no power to impose such a requirement on a single firm, paving the way for the regulator to assert the compensation demand. A tribunal will now decide whether the $700 million should be paid out based on the watchdog’s consumer protection rules.