Brite Advisors Update – March 2026: McGrathNicol Progress Report and What It Means for Beneficiaries

1. Interim Distribution: Almost There — But Not Quite Done

Interim distribution progress

The Receivers have now filed a total of six tranches of Payment Orders Applications, seeking Court approval to process interim distribution payments totalling USD $587 million — representing 99% of the amount available to distribute (the Interim Distributable Amount, as approved by the Court). Justice O’Sullivan has approved all six Payment Orders Applications, the most recent of which was made on 26 February 2026.

The Receivers have now paid the majority of the distribution payments for Tranches 1 to 5, and are in the process of arranging payment to Beneficiaries under the Tranche 6 Payment Orders.

What this means for you: If you have not yet received your Tranche 6 payment and believe you should be included, we recommend checking your trust documentation and contacting McGrathNicol directly at briteadvisors@mcgrathnicol.com. Cameron James can assist you in navigating this process.

2. The ATO Decision: March 2026’s Critical Moment

ATO engagement update

The most consequential near-term development is the expected outcome of the Receivers’ Second Private Binding Ruling (PBR) Application with the Australian Taxation Office. This application, lodged on 6 November 2025, relates to outstanding tax issues covering approximately AUD $100 million in potential liabilities that go beyond the capital gains tax matters addressed in the first PBR. The Receivers have provided supplementary submissions, and the Commissioner of Taxation has indicated a decision is expected in March 2026.

Following that decision, the Receivers anticipate a significant amount of further work, including:

• The preparation and filing of historic tax returns

• Obtaining Court orders in relation to the filing of tax returns and other secondary tax matters

• Taking steps which may be required if the ruling is unfavourable to Beneficiaries and/or to deal with assessments arising from the tax return filings

• Arranging payment of assessed tax liabilities (to the extent ordered by the Court)

The ATO has indicated it remains committed to assisting the Receivers to facilitate a practical outcome from a tax compliance perspective, including a tailored compliance process. At this stage, the timing of the resolution of these matters is unknown. The Receivers will continue to liaise with the ATO and seek to resolve matters as quickly as possible.

Important context for beneficiaries: Beneficiaries should plan for the Australian tax process to extend well beyond March 2026, regardless of the ruling outcome. A favourable decision clears a path forward; it does not resolve matters overnight. The Receivers will issue further updates as these tax matters progress. While there remains a view that the AUD $100 million provision is conservative and that a significant proportion may ultimately be available for distribution, the time taken to reach a decision suggests the outcome may be more complex than initially expected.

3. US Tax: Court Report Coming, Public Consultation Ahead

US tax update

As previously reported, USD $10.2 million was included in the Non-Distributable Amount and withheld from the Interim Distribution in respect of potential US tax liabilities.

The Receivers are currently preparing a report to the Court that will outline: (i) the position in relation to the US tax liabilities, including the estimated value; (ii) how this will impact future distributions to Corporate Trustees and Beneficiaries; and (iii) what will be reported to Beneficiaries. The report is intended to support orders sought by the Receivers in relation to the filing of US tax returns, which have already been prepared.

The Receivers will seek publication orders to publish this paper once prepared and invite feedback from interested parties, which will then be provided to the Court for consideration. As with the Australian tax position, the timing of the resolution of US tax matters is currently unknown.

What to watch: The publication of the Receivers’ Court paper on US tax is the next discrete development to expect in this strand. It will be the first time the estimated quantum of US tax liabilities is explicitly disclosed. We will review and comment on this once published on the McGrathNicol creditors page.

4. When Will There Be a Second Distribution? The Honest Answer.

Next steps

This remains the key question for Brite Advisors beneficiaries. The March update provides further detail, but limited clarity on the timing of any subsequent distribution.

Now that the majority of the Interim Distributable Amount has been paid, the Receivers are prioritising resolving outstanding matters relating to the Non-Distributable Amounts. The Receivers have confirmed they do not intend to seek Court orders for a second interim distribution until matters impacting the Non-Distributable Amounts are sufficiently progressed to enable a meaningful distribution to be paid.

The Non-Distributable Amounts comprise three components:

• A provision on account of potential Australian and US tax liabilities

• A provision on account of unresolved claims to Client AuM

• A 15% contingency

The Receivers are dealing with matters related to the unresolved Client AuM claims and intend to file an application with the Court in the coming months seeking orders to resolve these matters. That is encouraging, but it is only one of three components holding back the next payment.

It is worth remembering how long the first distribution took. The receivership commenced in late 2023, and the first payments under Court-approved Payment Orders did not begin reaching beneficiaries until 2025 — a process that itself took six tranches and many months to complete. The structural complexity of the second distribution is no less significant: it requires resolution of live tax proceedings in two jurisdictions, Court orders, and the clearing of disputed AuM claims. Beneficiaries should realistically expect the second distribution to be a late 2026 event in our view, and potentially later depending on how the ATO ruling, US tax process, and AuM claims are resolved.

Our assessment: Anyone anticipating a second payment within the next six months should recalibrate their expectations. The pathway to a second distribution is long, and every stage requires Court involvement. Cameron James recommends that affected clients seek advice on their financial position now rather than relying on distribution timelines that remain genuinely uncertain.

5. What to Watch For in March and April 2026

The ATO Second PBR Outcome

This is the headline event. McGrathNicol has been told to expect a decision in March 2026. Whether favourable or unfavourable, it will significantly shape the pace of subsequent steps — particularly around historic tax return preparation and any further Court applications. We expect McGrathNicol to issue a further circular to beneficiaries promptly after this decision is received.

The US Tax Report to Court

The Receivers are finalising their Court paper on US tax matters. Once publication orders are granted, this document will be made available to beneficiaries — the first time the estimated quantum of US tax liabilities will be explicitly disclosed. Watch the McGrathNicol creditors page at mcgrathnicol.com/creditors/brite-advisors-pty-ltd.

The AuM Claims Application

The Receivers have flagged a Court application in the coming months to resolve unresolved claims to Client AuM. This has no confirmed date, but it is the component of the Non-Distributable Amount most likely to be addressed through a discrete Court application in the near term.

Tranche 6 Completion

If you are a Tranche 6 beneficiary, you should expect to receive payment imminently. If you have not received it within the next few weeks, follow up directly with McGrathNicol at briteadvisors@mcgrathnicol.com.

6. How Cameron James Is Helping Those Affected

Cameron James has been working closely with Brite Advisors' clients since the receivership began. We understand how disruptive and distressing it has been to have funds locked up for an extended period, and we know that for many clients — particularly those who were drawing an income from their investments — the financial impact has been severe.

Our team has extensive experience helping UK-based clients who held investments through Brite Advisors structures. We can assist with:

• Reviewing your financial position in light of distributions received and likely timelines for further payments.
• Advising on your broader pension and investment arrangements, including whether you need to restructure your holdings following exit from Brite-advised structures.
• Navigating the claims and documentation process with the McGrathNicol Receivers, including understanding your entitlements under the Payment Orders process.
• Planning for the extended gap before any second distribution, so that your immediate financial needs are not solely dependent on receivership timelines.
• Liaising with specialist legal and tax advisers on cross-border matters where the UK, Australian, and US tax positions intersect.

If you are a Brite Advisors beneficiary and have not yet spoken to an adviser about your position, now is an appropriate time. The interim distribution process is nearing its conclusion, which means the spotlight will increasingly shift to what comes next — and that process carries real complexity and uncertainty. Being prepared matters.

Conclusion

The 5 March 2026 update confirms that the first Brite Advisors distribution is close to completion, but sets realistic expectations about the distance to any second payment. The ATO ruling expected this month is the next material development, and will set the pace for much of what follows. The US tax Court report, once published, will be equally significant.

For beneficiaries, the message is clear: the receivership process is complex, multi-jurisdictional, and Court-dependent at every stage. Those who engage with financial advice now will likely be better placed to manage their financial position through what is likely to be a lengthy second chapter.