BlueCrest Loses Bid to Block $700 Million Investor Payout (1)

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.

The ruling is a ...