Brite Advisors Update – August 2025

If you’re affected by the ongoing Brite Advisors liquidation, you’re likely asking: How much will I get back? When will I get it? Can I change my SIPP or QROPS trustee now?

This update covers:

• The latest Brite Advisors distribution position
  
• Why the shortfall has turned into a surplus, but isn’t guaranteed
  
• The upcoming court hearing and timeline for payouts
  
• The realities of a Brite Advisors change of trustee or Brite SIPP/QROPS transfer at this stage
  
• Taxation, deceased beneficiaries, and AFCA complaints
  
• Why some advisers’ actions are hampering clients rather than helping

Brite Advisors Shortfall – From Deficit to Surplus

When the Receivers (MGN) took control in December 2023, Brite Advisors’ books showed an estimated USD 94.3 million shortfall (≈12.6%).

As at 4 July 2025:

But caution is warranted:

• The surplus could shrink with market volatility or currency movements, although it could of course further increase.
  
• Tax liabilities in Australia and the US remain unresolved, and this will have a material impact on the amount and timing of distributions.
  
• Final figures depend on valuation disputes being settled

This is welcome news, and so far the Receivers have been rewarded for doing what was likely the right, but risky and bold, move to keep the funds invested, rather than move to cash or less volatile assets.

Whilst there is of course still a large chunk missing, and how much of that is ultimately recovered remains to be seen, it is likely at least somewhat comforting to know that, as it stands, the valuation notices for more members are actually lower than their likely pay-out. Of course, markets are fickle and that could reverse, but for now it’s welcome news.

Surrender Rebate & Interest Disputes

The Receivers have filed an Outline of Submissions (1 Aug 2025) and a Supplementary Report (1 Aug 2025) on how Surrender Rebates and Interest should be treated in client Valuation Notices. These have been served on ASIC, Interested Parties, and Beneficiaries with an active dispute, and publication orders have been sought.

Key deadlines for those involved

• 8 August 2025: Apply to the Federal Court for leave to be heard at the Surrender Rebate & Interest Disputes Hearing (r 2.13(1) Federal Court (Corporations) Rules 2000).
  
• 29 August 2025: Alternatively, send your evidence/submissions to the Receivers for filing.
  
• 5 September 2025: Receivers’ deadline to file your materials with the Court.
  

Further procedural detail is in the 28 May 2025 update on the McGrathNicol creditor page.

What this means

If you dispute how your surrender rebate or interest has been handled in your valuation, you have two routes: 

1) seek leave to be heard directly by the Court by 8 Aug, 

2) submit evidence to the Receivers by 29 Aug so it can be lodged on your behalf by 5 Sept.

Missing these dates may mean your position isn’t considered at the hearing. 

Distribution Methodology – Why 13 December 2023 Is Fixed

The Federal Court has ruled that all Brite Advisors distribution calculations will use entitlements as at 13 December 2023 – the date Receivers were appointed.

What this means:

• Clients with high-growth portfolios post-freeze don’t get extra credit
  
• Cash-heavy accounts aren’t penalised for missed gains
  
• The majority share in pooled growth from the Deficient Mixed Fund

This date ensures consistent treatment for all clients who have been unable to change investments since October 2023.

We know this almost feels redundant to bring up again, but a fair few owners of Bespoke assets have been pushing back given the huge rises in some of those holdings, so MGN wanted to reaffirm their position. The Deficient Mixed Fund approach is set in stone, and it looks like neither MGN nor the Courts will be budging on that.

The main rationale appears to mainly be that they set that date already, and all the support and evidence has been provided based on those valuations, but also that those who had large cash holdings, or positions that ended up declining, were locked out of making changes since the Receivership. 

There is also a decent likelihood that a lot of those positions that have gone up so much would have been sold down when the gains were less significant, so overall we understand the Receivers position, even if we heavily sympathise with those who will not have benefitted from heavily appreciated positions in their bespoke assets. Conversely, if you were in a losing position, or sitting heavily in cash, and unable to sell down, that would have been incredibly unfair as you would have been forced to accept your fate.

Key Court Dates for Brite Advisors Distribution

Looking forward from August 2025:

Reality check – even with approval in September, most beneficiaries are unlikely to see funds until late 2025, and more likely 2026.

Brite Advisors Change of Trustee – Why It’s Difficult

Many clients want a Brite SIPP or QROPS transfer or a Brite Advisors change of trustee to move away from their current Trustee for whom they have lost faith etc.

There has been an amendment to the Court Orders that has technically opened the door to a Change of Trustee, even though the funds are still frozen. However, in reality, all that has changed is that they have removed any barriers that could be attributed to the Receivers and/or the Australian courts.

Originally MGN mentioned seeking the ability for Brite members to unilaterally change their Trustee, but after consultations and feedback from both regulators and Trustees they appear to have soon realised that is not legally possible given SIPP and QROPS regulations. As such, they came back to just state they have no issue with it, have requested (and had approved) that the orders be amended to make sure they aren’t blocking it, and then leave it up to the Trustee and the members to resolve as a private matter.

They have therefore provided a payment instruction document to allow a payment to a new substitute Trustee. However, that requires it to be signed by the old Trustee, not just the member and a new Trustee.

Having discussed this at length with both existing SIPP and QROPS Trustees involved with Brite, and also with some of the new Trustees we may transfer clients to after the funds are unfrozen, we just can’t see how this is in reality remotely feasible at this stage.

There is just so much that goes into any sort of change of Trustee process, that we see no way how in practice it will be possible to change the Trustee whilst the funds are frozen on the Brite Platform.

The first sticking point is that Maltese QROPS require a financial adviser to open and manage, and the only regulatory compliant SIPPS we know of for non-UK Residents, and especially US and EU Residents, also require a financial adviser. It is considered by most SEC and FCA regulation compliance experts, based on guidance from those regulators, and indeed most other regulatory jurisdictions as far as we know, that you can not provide regulated financial advice on assets that are frozen. The main reason for that is that there is just so much that is subject to change and unknown about the ultimate outcome between now and the funds being unfrozen, that you can’t include them in any sort of financial advice. 

That means that Financial Advice can’t be formally provided (hence why even though we have alluded to and costed up likely potential moves once the funds are released, even those Brite members who have signed up with Cameron James to become their ongoing adviser have not signed any formal advice report on what to do with the funds now, as we can’t lawfully do that until the funds are unfrozen, regardless of what the Receivers have had to say). With no advice able to be provided, that means no new compliant SIPP or QROPS can be set up, so the change of Trustee plan falls apart off the bat.

The second point is that there are huge regulatory and legal burdens on Trustees, and when there are frozen assets, especially like this where significant funds are misappropriated, there are all sorts of potential tax/legal implications and future liabilities that may even be unforeseen. Given that, we see, and especially after discussing with the many of the Trustees as well, no way that they would ever be prepared to sign off on changing Trustees with all of this to be resolved. Perhaps if the new Trustee was willing to indemnify them with unlimited liability, but even that likely wouldn’t fly with the FCA etc.

The final point is that we just can’t see how any responsible and prudent Trustee would sign up to onboarding these assets given all the issues already mentioned above. We have no idea how they would manage to get through the various KYC/AML checks and be comfortable taking ownership of assets that they don’t know what they will ultimately be worth, what form they will be in nor what contingent liabilities they bring etc. From a regulatory/legal perspective, but also from a commercial one, we just don’t see how any of the well regarded providers in this space would go anywhere signing up to that at this stage.

So, overall, whilst we personally would absolutely love to get a Change of Trustee done now, where we have deemed it suitable, we see no way how it is possible. The old Trustee very likely won’t sign that form, no adviser who has any interest in adhering to correct regulatory practice would advise on it and open a new pension, and no new respected and compliant Trustee would sign up to take ownership of the assets, that we just think it is a complete non-starter.

Overall, our advice is to save your time and energy, as this is really only going to be possible once the funds are back with the original Trustee. Get to that stage, and then you go from there, like we’ve guided from the outset.

You can also use this as a bit of a litmus test for any advisers or prospective alternative Trustees you're engaging with. Any financial adviser who would be willing to give formal regulated advice and set up a new pension, given the current status with the Brite platform, would have our alarm bells ringing. In regard to a Trustee willing to sign on as a substitute, we would give them the benefit of the doubt as they may not know the full implications of what they would be embarking on

Other Issues Affecting the Brite Advisors Distribution

Tax Liabilities

Australian and US tax obligations are under review and could reduce payouts or cause delays. There seems to be potential issues with old IRS returns, let alone the ones that weren’t done and need to be completed and filed still, so this is likely to require a fair bit more time and, unfortunately, cost, for MGN to resolve with the accountants and the IRS.

Deceased Beneficiaries

Probate and estate processes are slowing distribution to heirs when documentation is incomplete. Fortunately there are not many deceased beneficiaries (sidenote: our huge condolences to those reading this who have just lost a loved one and are now caught up in this mess, which is the last thing you need at this time), so should not have too much material impact on the vast majority of Brite beneficiaries. They have put together a formal process for those that are deceased on how to verify their entitlements with the Corporate Trustees for those who have not had their entitlements verified i.e. via the new surviving beneficiary etc.

AFCA Complaints

Brite Advisors remains an AFCA member until April 2026, preserving client rights. MGN are still liaising with AFCA over the numerous complaints that have gone in, and there is word that those who received advice from Australia may be in a good position especially, but there is not too much concrete information out there at this stage. The Receivers are liaising with AFCA and CSLR in regard to potential loss calculations, to assist with any future compensation claims, if applicable. Again, more information will be provided in due course on all of this, as and when it comes from MGN.

Financial Advisers – Why Performative Complaining Hurts Clients

Some advisers have, according to MGN, been engaging in what appears to be little more than performative complaining, venting to MGN about delays and the proposed distribution methodology without offering solutions or adding anything constructive.

This behaviour:

• Wastes client time
  
• Increases anxiety
  
• Damages professional credibility
  
• Does nothing to speed up the legal process
  

At Cameron James, we focus on constructive, actionable engagement with trustees, receivers, and courts. 

Your adviser is there to always work in your best interest, not play on your emotions to pretend like they can do anything to speed things along or actually add any tangible benefit by whining to the Receivers.

They should be focusing your energy on your wider financial planning and helping you keep your emotions in check, not fuelling your anger and frustration, that is just manipulative, unhelpful and incredibly unprofessional.

Next Steps for Brite Clients – How to Prepare Before Funds Are Released

The key task now is choosing a new adviser, which we have discussed above, and then from there, having made your decision after seeing what their prospective advice is, do all your due diligence to make sure you are comfortable with their advice and fully informed about the course of action that will be taken once the funds are released.

Standard guidance on finding a good adviser applies, which is in previous blogs but also nicely documented in a guide we put together here, where we go into detail on 12 key areas to do your due diligence. It is by no means foolproof, as advisers can omit things, and even those that tick all the boxes may not actually be any good or provide much value for money, but it should go a long way to assisting you in finding the right type of adviser moving forward, and hopefully, if you choose wisely, it will be the last adviser you ever use!

For US Residents, one good tool to use for, although for US advisers there is a regulatory obligation to share much of the details there anyway, is the SEC’s registry, the IAPD, which is accessible here. You can search for the specific adviser you are speaking with, and see their US advice employment history and find out other pertinent information about them.

For those resident outside the US, there will be local regulatory registers to help you do your due diligence on your adviser, such as the FCA Register for UK residents, but one good tool you can use, which all Brite clients can use, is to add yourself to the FB Group I have mentioned before. The Group is accessible here, and there are other Brite specific groups available, which you can obtain access to if you post in the original group I have linked to. There is plenty of discussion of Brite and related parties in there, and you will find that a very helpful tool whilst conducting your due diligence, as any advice firms or advisers you are speaking with may be referenced in there, either positively or negatively.

You can also use this time to do proper financial planning with them, looking at your entire financial situation and helping you plan and fund your retirement goals, rather than just focusing on investing your UK/Malta/Gibraltar pension assets, and getting real value-added financial planning from them. 

That way, with c.3-4 months, with our best guess, for the money to be released, you can be in a position where you and your family are fully comfortable with your adviser, the new pension provider, if applicable, the new investment provider, the underlying funds and the actual value add ongoing planning you are going to receive. You can then sort out a change of agency with your Trustee, which still does not fully commit you to working with that adviser as the funds are frozen, but does mean you are as far along in the process as can be, and quite literally can’t be doing more. 

As mentioned above, there is probably lots of simple financial planning you could be doing together, picking up those small “wins” that will just compound and make a huge difference for you in the future.