SEC Announced Delay of Its Decision on $170M Distribution for BlueCrest Victims

The Securities and Exchange Commission (SEC) recently announced the delay of its decision on $170M distribution for BlueCrest victims.

BlueCrest agreed to the payment of $170 million last year in order to settle charges arising from inadequate disclosures, material misstatements, and misleading omissions concerning its transfer of top traders from its flagship client fund, BlueCrest Capital International (BCI), to a proprietary fund, BSMA Limited, and replacement of those traders with an underperforming algorithm.

On November 2, 2021, the SEC published a Notice of Proposed Plan of Distribution and Opportunity to Comment for the distribution of monies placed into a Fair Fund in the matter. The Notice invited public comment on the proposed plan of distribution through December 2, 2021. The Commission has received public comments on the Plan.

Recently, the SEC confirmed that a good cause exists to extend the 30-day time period, provided in Rule 1104 of the Commission's Rules, with entry of an order extending time to approve, approve with modification, or disapprove the Plan until March 31, 2022. Accordingly, the time to enter such an order is extended until the end of March 2022.

​Fazzaco recently reported that the SEC has imposed a £40,806,700 fine on BlueCrest Capital Management (UK) LLP (BCMUK) and ordered the company to pay redress to clients who have suffered loss as a result of its failings.