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BlueCrest agrees $170m settlement with US regulator on charges of ‘misleading’ investors

BlueCrest agreed to a cease-and-desist order imposing a censure, and must pay disgorgement and prejudgment interest of $132,714,506 and a penalty of $37,285,494

By

Bérengère Sim

The US Securities and Exchange Commission found that BlueCrest Capital Management had made “inadequate disclosures, material misstatements, and misleading omissions" that related to the firm’s transfer of top traders from its flagship client fund to a proprietary fund
The US Securities and Exchange Commission found that BlueCrest Capital Management had made “inadequate disclosures, material misstatements, and misleading omissions" that related to the firm’s transfer of top traders from its flagship client fund to a proprietary fund Photo: Zach Gibson/Getty Images

BlueCrest Capital Management has agreed to pay $170m to investors in one of its funds, after the US Securities and Exchange Commission found it moved its best traders off the fund and replaced them with an “underperforming algorithm”.

In an 8 December statement, the watchdog said that the charges involving the UK-based fund manager were for “inadequate disclosures, material misstatements, and misleading omissions" that related to the firm’s transfer of top traders from its flagship client fund, BlueCrest Capital International, to a proprietary fund, BSMA Limited.

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