Last holiday season, the U.S. Securities and Exchange Commission filled BlueCrest Capital Management’s stocking with a big old lump of coal, having found that the British hedge fund slightly jumped the gun on its conversion to a family office by taking all of its best traders off of its flagship fund and putting them to work on an internal hedge fund, and then replacing them on the flagship with an algorithm that did all the same things as those best traders, just 24 hours after them, and then not telling the clients it would soon tell to get lost anyway about it.
This year, it’s the turn of the U.K. Financial Conduct Authority to take their own hedge fund to task for it. But in spite of the fact that the FCA’s allegations are essentially exacting the same as those in the SEC settlement, and the fact that its home regulator wants to impose a fine one-third the size of that BlueCrest agreed to pay last year, the hedge fund is having none of it this time.
It said its findings were provisional as BlueCrest had chosen to refer the case to a further tribunal which would decide the appropriate action, if any, for the FCA to take./BlueCrest said in a statement it planned to "vigorously defend against the FCA's allegations".
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