🔍 Key Points
- McGrathNicol (MGN) have filed their Proposed Interim Distribution Application with the Federal Court of Australia (FCA).
- Most client funds are expected to be released by January 2026.
- The Non-Distributable Amount has dropped sharply, meaning a greater share of assets will be included in the first payout.
- The IBAU Margin Loans are being repaid and terminated.
- Total portfolio growth since receivership: 31%+ (per Ted Alexander Chief Investment Officer, BML Funds Interim Manager).
- Alltrust Services Ltd (UK) and Bourse Pension Administrators Ltd (Malta) are now on the approved trustee list.
- Cameron James advisers continue to help clients review their financial situation, change trustees (if applicable), and plan reinvestment.
What Has Happened This Week
On 7 October 2025, McGrathNicol (MGN) filed their Proposed Interim Distribution Application with the Federal Court of Australia (FCA). This is the formal request for Court approval to release client money that has been held since Brite Advisors entered receivership on 13th December 2023.
The application includes:
- The Minute of Proposed Orders (which sets out the detailed distribution process),
- The Thirtieth Affidavit of Linda Methven Smith, and
- Supporting evidence from Ted Alexander, the Interim Fund Manager.
The Court has allowed these materials to be published, and they can now be accessed via the MGN creditor page ( found via this link https://www.mcgrathnicol.com/creditors/brite-advisors-pty-ltd/).
The Interim Distribution Application Hearing was also pushed back a day to 13th November 2025 (10am AWST)
Understanding the Non-Distributable Amount
Certain assets remain temporarily restricted until legal, tax, and operational issues are finalised. As of October 2025, the Non-Distributable Amount totals ≈ US $42 million, comprising:
| Category | Estimated Value (USD m) |
| Potential Tax Payments | 16.6 |
| Unresolved Claims | 6.3 |
| Receivers’ Costs | 3.6 |
| Legal & Professional Fees | 2.5 |
| Trading & Software Costs | 2.1 |
| Market Downturn Provision (35%) | 10.9 |
Because the Non-Distributable Amount has reduced since earlier estimates, the Interim Distributable Amount (i.e. the cash available to pay out now) is expected to represent more than 92% of verified client assets, as per the latest weekly portfolio report, which showed assets of $766.6m.
This is obviously great news and represents a significantly higher proportion of returnable assets than initially expected. The original estimate was around 75% of total assets, with over $200 million planned to be retained. While we had publicly suggested that the interim distribution would likely be far higher than 75%, largely due to what we viewed as an overly cautious initial tax provision, even we were surprised by such a rapid and substantial reduction in retained funds.
We’re genuinely pleased for Brite clients, who will now receive a much larger portion of their money back far sooner than originally anticipated.
Interim Distribution Process and Timeline
| Stage | What Happens | Timeline |
| Liquidation Window | Receivers sell selected investments to create cash for the interim payout. | Within 21 business days of Court approval (mid-November 2025). |
| Distribution Window | Receivers transfer the cash to trustees or beneficiaries. | Within 20 business days after liquidation. |
| Interim Distribution Valuation Date | Portfolio valued in USD to fix exchange rates for payments. | Start of the Distribution Window. |
| Payment Orders Filed | Application to Court specifying exact payments. | By 18 December 2025. |
| Payment Orders Hearing | Final Court approval for release of funds. | 23 December 2025. |
Payments are expected before the end of January 2026, assuming Court approval proceeds as planned, and given the liquid nature of the funds, that could be mid or even early January.
IBAU Margin Loan and Future Claims
As part of the ongoing Brite Advisors Receivership, McGrathNicol (MGN) has requested Court approval to repay and terminate the IBAU Margin Loans, valued at approximately US $14.7 million.
Once this process is complete, the associated Interactive Brokers (IB) accounts can be fully unfrozen, paving the way for future distributions.
Importantly, this step also preserves the option for litigation or recovery in the future, should the Receivers ultimately decide to go down that route.
The Receivers have estimated potential claims of around US $123.5 million.
The key thing to highlight here is that this is not MGN giving up on pursuing a claim, and given their continued discussion of such investigations within their affidavits, we are cautiously optimistic that they will go down this route, and they have confirmed that it would be funded by private litigation funding, and not backed by Brite funds.
This means that no funds need to be committed, which therefore means all available funds could be returned, the Receivership effectively ended, and then litigation and future potential reimbursements provided later, which is very promising news.
Again, let's not get carried away, as litigation is long-winded and contentious, but it is nice to see MGN putting up a fight, especially, as we know, how much anger and frustration, quite rightly, Brite members have around the margin loans and the actions of their former advice firm.
Trustee Updates: Alltrust and Bourse Malta Added
The Court has amended its Distribution Orders to officially include:
- Alltrust Services Ltd (UK), and
- Bourse Pension Administrators (Malta) Ltd.
Both are now officially approved to receive payments from the Receivership.For clients, this means that any trustee listed on the Court-Approved Trustees Register, which now includes AllTrust & Bourse, can legally receive funds as part of the interim payout process.
Changing Trustee: What Clients Should Consider
We are well aware that many Brite Advisors members have little to no faith or confidence in their Trustees and, to be frank, we often do not have much either, especially those so entwined with individuals and/or companies, both currently and historically, that have poor reputations, to say the least, so we sympathise massively.
There are two main pension types involved with Brite:
- UK SIPPs (Self-Invested Personal Pensions)
- QROPS (Qualifying Recognised Overseas Pension Schemes), primarily based in Malta and Gibraltar
QROPS – Greater Flexibility for Trustee Changes
Despite their cross-border complexity, QROPS are generally more flexible when it comes to changing trustees. Unlike many SIPPs, QROPS do not rely on integrated provider-platform structures. They act only as a pension wrapper, with a separate investment vehicle (such as a platform or bond) held inside.
Importantly, QROPS are not subject to outdated UK rules that prevent partial transfers once benefits have been accessed, a restriction that often complicates SIPP transfers.
Fortunately, our preferred QROPS provider is included on the Court’s approved trustee list.
We are already in the process of transferring several Brite members’ QROPS to this provider and getting ready to reinvest their proceeds as soon as the Brite funds are released.
As far as we are aware, Cameron James is the only financial advisory firm that has been granted permission to complete QROPS-to-QROPS transfers for US residents to this provider.
We successfully completed such a transfer last year for a US-based former Brite client who had incredibly fortunately not switched platforms before the Receivership began. To our knowledge, no SEC-authorised advisers currently have, or would be permitted by the QROPS provider to have, this capability.
SIPPs – More Restrictions but Still Viable Solutions
Now, this is where there are more limitations, mainly due to the nature of the “best” SIPP providers out there for non-UK residents, but also UK regulatory limitations around partially transferring UK pensions that have already been accessed.
Given that the Brite Receivership will remain ongoing beyond this initial interim distribution, any new Trustee will also have to take over ownership of the rights to these future income streams.
The two “best” SIPP providers for non-UK residents on the market, in our view, are both “Integrated” solutions (their FCA regulated platform is integrated into their SIPP offering), which means they are not open architecture and can only accept assets on their platforms. As such, neither can take over as a Trustee of the Brite assets.
There are some existing Brite SIPP providers, namely AllTrust, that we are somewhat comfortable with, at least for the time being (if any of these providers are not up to scratch, we will transfer out of them to our preferred providers pronto). However, there are several that have all sorts of ties, both current and historical, to individuals/entities that give us concerns especially when you look at the Financial Ombudsman complaints, management and accounts.
However, there are potential workarounds for those with “uncomfortable” SIPP Trustees (namely setting up the new SIPP and doing partial transfers as and when the proceeds come in from Brite, and then closing the old SIPP once Brite finished), but they are only available for SIPP holders who have not accessed all of their available 25% lump sum (i.e. moved all of their pension into drawdown), as partial transfers are not allowed for funds in drawdown due to archaic UK pension rules. In that situation, any change of Trustee will not be possible until the entire amount can be transferred, which will require the Receivership to be over/all funds to be returned to the SIPP.
Each individual situation is different, so individual personalised advice needs to be sought, especially given that any new SIPP provider is going to require financial advice, as there are no compliant SIPPs for US/EU retail residents, that we know of, that do not require a financial adviser, both to set up, but also to manage on an ongoing basis, especially for retail clients.
We know the options for non-UK residents are limited, but there are ways to utilise good, secure and well managed SIPPS and QROPS, but you will need to liaise with an informed and knowledgeable financial adviser to make sure you are using one of them, and protecting your assets going forward.
Fund Manager Response to Trading & FX Concerns
Throughout the Brite Advisors Receivership, both clients and advisers, including ourselves, have raised concerns about the liquidation process and the potential risks of asset sales being managed by what is, in reality, a relatively small operation.
These concerns were formally documented and shared with McGrathNicol (MGN) during the distribution planning process by many parties. It’s therefore encouraging to see Fund Manager Ted Alexander address these points clearly and transparently in his second affidavit, now publicly available through the Court filings.
The main takeaway is reassuring: 97% of portfolio assets are held in highly liquid ETFs. While the total value is significant, Brite’s positions are not material holdings within those ETFs, meaning the liquidation of assets is unlikely to cause price volatility or market disruption. ETFs also track an underlying basket, so the purchases and sales of the ETFs themselves actually have little to no price impact anyway.
It is worth noting that many of these ETFs are US-listed, which technically should not have been held within UK/EU pensions under MiFID II rules for retail clients, but the receivers have handled the process prudently to avoid issues (it is more of a platform issue/responsibility than an individuals).
FX and Reinvestment Risks
The main challenge now lies in Foreign-Exchange (FX) management and reinvestment timing. FX considerations involve ensuring sufficient liquidity to match each member’s preferred currency denomination, while also mitigating exposure to currency movements given the global diversification of the portfolios.
At the same time, the fund team must balance reinvestment risk, ensuring that proceeds from liquidated positions are not left in cash for too long if equity markets begin to rise during the payout window.
It is clear from the evidence that both Ted Alexander and MGN are taking these operational risks seriously and are doing their best to minimise any potential negative impact.
Reporting and Transparency
Another important issue is reporting accuracy. For many Brite clients, the legacy records have been complex and inconsistent, making it difficult to determine exact asset ownership and valuations.
The Fund Manager has now confirmed that pre- and post-trade reports will be provided to all relevant parties, assisting clients and trustees with tax reporting and documentation for compliance purposes.
What This Means for You
For most clients, this filing represents genuine and incredibly encouraging progress, even from a few weeks ago when this Interim Distribution proposal was first announced, as the Receivers are now preparing to release the majority of your verified funds in c.3 months, if not less.
If your pension was held under Brite, you should now consult with a locally regulated financial adviser, to review your current situation, look at the options and advise you accordingly.
Given that the payment orders need to be filed by 18th December 2025, that gives us just under c.8 weeks to complete a transfer (if applicable), appoint a suitable investment platform, and make sure all payment forms and details are correct and with the Receivers for Court approval.
What Could Delay the Brite Interim Distribution 2025
Now, whilst the above commentary has been overwhelmingly positive, as we all know, this Brite Receivership has often been a case of one step forward, two-steps back, so we’d be remiss if we didn’t take a bit of time to state some of the potential issues that could crop up that delay matters.
Now, MGN reported many potential issues, both major and minor, in their Affidavit, but the general point to take is that the timeline here is based on all these workstreams going to plan. The two main areas that could/would cause material delays, and push back this Interim Distribution are namely the ATO disagreeing with the tax position, and IB not playing ball with the approach and not allowing the flow of funds.
Both of these are not expected to materialise, but you should be aware that they could occur, even though we are optimistic that they won’t, and the timeline above will end up being rather accurate.
However, it won’t be until the formal court orders are made after the 13th November hearing that we can be all but certain of the above timeline.
How Cameron James Can Help
At Cameron James, we’ve already helped dozens of Brite clients, including US, UK and EU residents, to navigate the receivership process with confidence.
We assist clients to:
✅ Review financial situations and provide holistic financial planning
✅ Review Brite entitlements and estimate interim payout amounts.
✅ Prepare and submit trustee-change documentation, if applicable/advised.
✅ Liaise directly with MGN or new trustees to confirm payment details.
✅ Advise investment strategies on transparent, fee-only, FCA-regulated (where possible) platforms such as Novia Global.
Our role goes beyond recovery, we aim to ensure your pension is restructured on a compliant, fully regulated foundation so you can move forward with confidence.
Reclaim Clarity Over Your Pension
If your funds are tied up in the Brite Advisors Receivership, now is the time to prepare. Our advisers can help you review your verified entitlements, change trustees, and plan your reinvestment strategy, all under FCA and SEC regulation.
Next Steps and Court Timeline
| Date | Event |
| 13 Nov 2025 | Interim Distribution Application hearing |
| Mid–Late Nov 2025 | Liquidation Window (asset sales and FX management) |
| 18 Dec 2025 | Payment Orders filed |
| 23 Dec 2025 | Payment Orders hearing |
| Mid-Jan 2026 | Expected first interim payments |
FAQs
1️⃣ How much will I receive?
The Receivers estimate around 94%+ of total assets will be released in this interim distribution.
2️⃣ What happens to the rest?
The remaining Non-Distributable Amount (c.$42m) will stay on the IB Platform until legal and tax issues are finalised, with portions likely forming part of a later distribution.
3️⃣ Do I need to change trustees?
No, but you may want to, which is where an adviser like those at Cameron James can discuss your options in more detail and advise accordingly.
4️⃣ When will payments happen?
Subject to Court approval on 23 December 2025, transfers should occur in January 2026.
5️⃣ Can Cameron James help with the trustee change?
Yes, our team can prepare the documentation, liaise with trustees, and ensure your funds are correctly received and reinvested.
Disclaimer: This communication is not intended for or directed to U.S.-connected persons. This communication should not be re-distributed or re-published without consent from Cameron James. Some of the content in this communication was provided by third parties of Cameron James. We have not independently verified every detail but believe the information to be reliable. None of this content should be construed as investment, legal, accounting, or tax advice.
Tax laws are complex and vary by individual. You should always seek advice from a qualified tax professional regarding your specific circumstances.