Brite Advisors Pty Ltd
Frequently Asked Questions
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The Receivers’ investigations remain ongoing. Please continue to check this page for updates. The Receivers can be contacted by email: briteadvisors@mcgrathnicol.com
1. What is the status of the Receivers’ investigations to date?
The Receivers filed the following reports:
the Receivers’ report to the Court dated 24 January 2024 (Second Report);
the Receivers’ report to the Court dated 4 March 2024 (Third Report);
the Receivers’ report to the Court dated 9 August 2024 (Fourth Report);
the Receivers’ Explanatory Memorandum (EM) and fifth report to the Court on 4 December 2024 (Fifth Report)
the Receivers’ Supplementary Explanatory Memorandum dated 25 March 2025 (Supplementary EM);
the Receivers’ Supplementary Report regarding Minerva Notes dated 2 May 2025 (Supplementary Report regarding Minerva Notes);
the Receivers’ Supplementary Report regarding Growth since 13 December 2023 dated 23 July 2025 (Supplementary Report regarding Growth); and
the Receivers’ Supplementary Report regarding Surrender Rebates and Interest dated 1 August 2025 (Supplementary Report regarding SRs and Interest).
Prior to the Receivers’ appointment as Receivers and Managers, they were appointed as Investigative Accountants, and in that role filed a report to the Court dated 8 December 2023 (First Report).
For details in relation to the matters arising from the Receivers' investigations, including suspected contraventions and offences by Brite Advisors and its directors and officers, please refer to:
The Receivers continue to investigate potential recovery actions against third parties and the directors and officers of Brite Advisors and intend to shortly make an application for orders that public examination summonses be issued and document production orders be made in order to gather more evidence in respect of potential claims. Irrespective of the merits of these claims, they will only be pursued if there is likely to be a commercial return to Beneficiaries. To avoid compromising any recovery actions, the Receivers are unable to disclose any further information as to the nature of the potential claims that they are investigating.
The Receivers understand that the Australian Securities and Investments Commission’s (ASIC) investigation relating to Brite Advisors and its directors and officers is ongoing. This is separate to the Receivers' investigations into potential recovery actions.
Please see ASIC’s website for further information relating to the status of its investigations into Brite Advisors.
2. What actions will be taken against the directors and related parties with respect to any identified misconduct?
Liquidators and Receivers have broad powers of investigation and a statutory duty to report any suspected contraventions of the Corporations Act 2001 (Cth) by Brite Advisors and its directors and officers to ASIC.
ASIC also have powers to bring enforcement action. The successful pursuit of such claims by ASIC can result in financial penalties, banning orders and in some cases jail time. The Receivers and Liquidators are working closely with ASIC and will continue to keep ASIC updated as to the status of their investigations.
The Receivers continue to investigate potential recovery actions against third parties and the directors and officers of Brite Advisors. Irrespective of the merits of these claims, they will only be pursued if there is likely to be a commercial return to Beneficiaries. To avoid compromising any recovery actions, the Receivers are unable to disclose any further information as to the nature of the potential claims that they are investigating.
3. How are the Receivers being paid for the work they are doing?
The Court Orders made on 21 December 2023 provided that, subject to Court oversight and approval, the Receivers’ fees, costs, and expenses (including those relating to their former appointment as Investigative Accountants) are to be paid from the Client AuM.
The Receivers’ remuneration, fees and costs are required to be reviewed and approved by the Court prior to payment, to ensure that the charges are reasonable, and the work undertaken has been necessary and properly performed. All Corporate Trustees are notified of the respective amounts and provided with the Receivers’ remuneration and costs and expenses reports immediately after they are submitted to the Court.
4. Why have both Receivers and Liquidators been appointed? What’s the difference?
The Receivers are appointed over all "Trust Assets" held by Brite Advisors, as that term is defined in the Court Orders made on 6 February 2024, which includes the Client AuM. The Receivers are responsible for holding and preserving, and in accordance with the Court orders, managing the Client AuM, including protecting the interests of underlying Beneficiaries and returning Client AuM to Beneficiaries in the manner that the Court orders.
The Receivers are the only persons authorised to act on behalf of Brite Advisors with respect to the Trust Assets and the directors' powers are suspended.
The Liquidators are appointed to Brite Advisors and are responsible for winding up the affairs of Brite Advisors and have broad powers of investigation and have control of any property of Brite Advisors that is not part of the Trust Assets. As the Receivers have previously reported, Brite Advisors has no material property other than the Trust Assets.
These are two very separate roles.
So, what does this mean for you? In summary, the Receivers will be dealing with you as a Beneficiary or Corporate Trustee with an interest in the Client AuM, which is under the control of the Receivers.
5. How has the variance in the Client AuM occurred, how can I obtain more information about this?
The Receivers undertook a detailed analysis of the variance in the Client AuM as at 13 December 2023, as detailed in section 6 of the Third Report. This analysis has been updated and is set out at section 2.1 of the Supplementary Report regarding Growth since 13 December 2023 dated 23 July 2025 (Supplementary Report regarding Growth).
As set out in section 2.2 of the Supplementary Report regarding Growth, as at 4 July 2025, the Receivers estimate that Brite Advisors held circa USD$793.7m in Client AuM. This represents an estimated USD$45.7m (or 6.1%) surplus to total Beneficiaries’ claims as at 13 December 2023, excluding the impact of potential taxation liabilities (refer to FAQ 21).
The quantum of the shortfall varies with time and may materially change due to a number of factors.
6. What are the next steps in the Receivership? How long will it take?
On 15 September 2025, the Court made two sets of orders:
The Distribution Methodology Orders, which establish the framework for calculating and making distributions of the Trust Assets.
The Interim Distribution Application Orders, which authorise the Receivers to seek approval (via an application to the Court) to (i) distribute the maximum amount possible from the Deficient Mixed Fund to Corporate Trustees and Beneficiaries (via an interim distribution), as well as (ii) return the other cash and assets held outside the Deficient Mixed Fund (the Excluded Assets) to Corporate Trustees and Beneficiaries.
What happened at the Interim Distribution Application Hearing?
The Interim Distribution Application was heard on 13 November 2025.
At the Interim Distribution Hearing, the Court made orders permitting the Receivers to proceed with a first Interim Distribution of the Client AuM, withholding Non-Distributable Amounts totalling approximately USD$187m. The Non-Distributable Amounts comprise amounts withheld on account of potential Australian and US tax liabilities, amounts withheld on account of unresolved claims to the Client AuM plus 15% of the value of the remaining assets invested on the IB Platform once these amounts have been excluded.
What is the status of the first Interim Distribution?
Since the Interim Distribution Hearing, the Receivers have taken steps in accordance with the Distribution Methodology Orders to prepare and execute the distribution process.
This has involved:
Liquidation of Assets: The Receivers, with the assistance of the Interim Fund Manager, have undertaken the orderly sale of the Liquidation Assets held in the IB Accounts, realising the equivalent of USD$593,686,585.
Determination of the Final Total Value: The value of the Deficient Mixed Fund has been calculated, applying prevailing exchange rates where necessary.
Calculation of Distributions: Each Beneficiary’s entitlement has been calculated using the Court-approved methodology. The first Interim Distribution of the Client AuM has provided an approximate 85 cents in the dollar return in respect of Beneficiaries’ Verified Entitlements (in USD) as at 13 December 2023. Refer to FAQ 31 for further explanation of the calculation of the interim distribution.
Payment Order applications: The Receivers have filed several payment orders applications with the Court during the period from December 2025 which related to the interim distribution payments that they proposed to make to Corporate Trustees and Direct Beneficiaries. His Honour Justice O’Sullivan of the Federal Court of Australia has made the orders sought by the Receivers.
Payment of Interim Distributions: The Receivers have made cash payments to eligible Corporate Trustees and Beneficiaries in the nominated currency during the period from December 2025, in accordance with the procedures established by the Receivers.
The Receivers have detailed the steps to be taken with respect to liquidation of the Deficient Mixed Fund and payment of an Interim Distribution in the (i) Second Affidavit of Ted Alexander dated 2 October 2025, and (ii) Thirtieth Affidavit of Linda Smith dated 7 October 2025 at paragraphs 115 to 121, both of which can be accessed from the Receivers’ webpage.
What happens next?
Now that the Receivers have paid the vast majority of the Interim Distributable Amount to Corporate Trustees and Beneficiaries. The Receivers are now prioritising resolving outstanding matters relating to the Non-Distributable Amounts.
The Receivers do not propose to seek orders for the payment of a second interim distribution until resolution of matters impacting the Non-Distributable Amounts are sufficiently progressed, to enable a meaningful distribution to be paid.
As set out in the Receivers’ updates dated 19 and 26 November 2025, the Non-Distributable Amounts comprise (i) a provision on account of potential Australian and US tax liabilities, (ii) a provision on account of unresolved claims to Client AuM, and (iii) a 15% contingency.
The Receivers are progressing resolution of the unresolved claims against the Client AuM and intend to file an application with the Court in the coming months seeking orders to resolve these matters. Please refer to FAQ 21 for an update in respect of Australian and US tax liabilities.
The Receivers have issued several updates to Corporate Trustees and Beneficiaries regarding the progress with liquidation of the Deficient Mixed Fund and payment of an Interim Distribution, which can be accessed from the Receivers’ webpage.
7. Will the Receivers be able to make an interim distribution to Beneficiaries so a portion of my investment can be returned?
The Court has granted orders on 13 November 2025 to enable an interim distribution to be paid to eligible Corporate Trustees and Beneficiaries. Please refer to FAQ 6 for further details in this regard.
8. Why can’t the Receivers determine the assets contributed by each investor and distribute those?
A simple distribution by reference to the records held by Brite Advisors is not possible.
Beneficiaries may have understood that certain investments were held for them by Brite Advisors, received account statements that identified specific asset holdings with Brite Advisors at various times, or otherwise received reassurance from Brite Advisors (or other parties) relating to the assets held for them. However, this does not necessarily mean that those investments were actually held by Brite Advisors. This applies regardless of: (i) whether the investments were in the form of a model portfolio or bespoke investment; or (ii) whether Beneficiaries understood that their assets were purported to be held on a “segregated” basis. See the Receivers’ Fourth Report at [2.1.14], [2.1.17] – [2.1.18], [2.1.23] – [2.1.26], [5.6.1] – [5.6.2], [5.6.27] – [5.6.48], [6.8], and [6.9].
The Explanatory Memorandum explains that Beneficiaries fall into six different categories which will determine what pool of assets they are entitled to claim against, and how their distribution is determined. Some Beneficiaries may have claims in multiple categories. Those categories are set out at Appendix A of the Explanatory Memorandum.
The Receivers have written to individual Beneficiaries separately to advise which category or categories they fall into.
9. When can a distribution be made?
The Receivers have taken steps in accordance with the Distribution Methodology Orders to prepare and execute the first Interim Distribution process. The Receivers have made cash payments for the first Interim Distribution to eligible Corporate Trustees and Beneficiaries during the period from December 2025.
Please refer to FAQ 6 for an update on the status of the first Interim Distribution.
Any Beneficiaries who believe they are entitled to a first Interim Distribution payment and have not received that payment (either directly or via their Corporate Trustee) and have not otherwise received correspondence from the Receivers regarding the first Interim Distribution, should contact the Receivers at briteadvisors@mcgrathnicol.com.
When will the next Distribution be made?
Now that the Receivers have paid the majority of the Interim Distributable Amount to Corporate Trustees and Beneficiaries, the Receivers are prioritising resolving outstanding matters relating to the Non-Distributable Amounts.
The Receivers do not propose to seek orders for the payment of a second interim distribution until resolution of matters impacting the Non-Distributable Amounts are sufficiently progressed, to enable a meaningful distribution to be paid.
As set out in the Receivers’ updates dated 19 and 26 November 2025, the Non-Distributable Amounts comprise (i) a provision on account of potential Australian and US tax liabilities, (ii) a provision on account of unresolved claims to Client AuM, and (iii) a 15% contingency.
The Receivers are progressing resolution of the unresolved claims against the Client AuM and intend to file an application with the Court in the coming months seeking orders to resolve these matters. Please refer to FAQ 21 for an update in respect of Australian and US tax liabilities.
10. Will I get all my money back and when?
As at 4 July 2025, the Receivers estimate that Brite Advisors holds circa USD$793.7m in Client AuM and has an estimated USD$45.7m (or 6.1%) surplus to Beneficiaries’ claims as at 13 December 2023, excluding the impact of potential taxation liabilities. The quantum of the shortfall varies with time and may materially change due to a number of factors.
The factors impacting the shortfall are explained in detail at section 6 of the Receivers’ 4 March 2024 report, together with section 5 of the Fifth Report and section 2.2 of the Supplementary Report on Growth.
Receivers and Managers' Report dated 4 March 2024 (Third report)
Receivers and Managers' Supplementary Report to Court dated 4 December 2024 (Fifth Report)
Receivers and Managers Supplementary Report regarding growth of Client AuM since 13 December 2023
The Court has granted orders on 13 November 2025 to enable an interim distribution to be paid to eligible Corporate Trustees and Beneficiaries. Please refer to FAQ 6 for an update on the status of the first Interim Distribution and matters requiring resolution before a second interim distribution can be paid.
11. What about the existing Client AuM? How is this being managed?
The Client AuM predominantly remains in accounts with IBA, which are under the control of the Receivers.
On 6 March 2024, the Court approved the engagement of a qualified interim fund manager to provide financial services, including:
monitoring the Client AuM;
providing recommendations to the Receivers on steps appropriate to manage risk and adherence to the applicable investment portfolio mandates; and
upon the instructions of the Receivers only, trade the Client AuM as needed to achieve this.
The Interim Fund Manager's appointment is to assist the Receivers in maintaining and preserving the value of the Client AuM. This is an important step in ensuring the ongoing management of the Client AuM for the benefit of the Beneficiaries. The appointment is an interim measure only to manage the Client AuM while the Receivers work towards developing a distribution proposal to return the Client AuM to the Beneficiaries.
On 17 June 2024, following the orders made by the Court on 5 June 2024 following conferral with IBA, BML Funds Management Pty Ltd (BML) was appointed Interim Fund Manager.
In relation to model portfolio investments, the rebalanced Client AuM is now invested in accordance with portfolio mandates, which comprises a broadly diversified portfolio and will continue to be managed accordingly.
In relation to bespoke investments, these assets are being monitored and reconciled on a regular basis.
As reported in the Supplementary Report regarding Growth of the Client AuM from 13 December 2023 dated 23 July 2025, Client AuM invested on the IB Platform (both model portfolio and bespoke assets) have performed favourably with aggregated growth of approximately 23.9% for the period from 13 December 2023 to 4 July 2025.
In order to facilitate the first Interim Distribution payment, the Receivers, with the assistance of the Interim Fund Manager, have undertaken the orderly sale of the Liquidation Assets held in the IB Accounts, realising the equivalent of USD$593,686,585. Please refer to FAQ 6 for further details regarding the first Interim Distribution.
The remaining assets on the IB Platform are valued at approximately USD$188m (comprising USD$22m cash and USD$166m securities as valued at 10 December 2025). These assets will continue to be actively managed by the Interim Fund Manager.
Weekly portfolio reports produced by the Interim Fund Manager are available via the Brite Advisors portal on the McGrathNicol website.
12. Can Beneficiaries or Corporate Trustees provide trading instructions directly to or contact the Interim Fund Manager?
No, the Interim Fund Manager will be managing the model portfolios on an aggregate basis in accordance with the 6 March 2024 Court orders at the instruction of the Receivers.
Link: Court Order 6 March 2024
13. Is the existing Client AuM safe? What protections are in place?
The Court has made Asset Preservation Orders and other Court Orders to protect the Client AuM (including appointment of the Interim Fund Manager) whilst work is being undertaken to:
quantify and reconcile Client AuM losses, and
progress a strategy to ultimately manage and return Client AuM back to Beneficiaries in an equitable manner.
This means that only the Receivers and their authorised representatives can lawfully deal with the Property of Brite Advisors, as authorised by the Court Orders.
14. Is the Client AuM Segregated?
The Receivers are aware that Brite US has informed its clients that it believes their assets are segregated from Client AuM held for other Beneficiaries.
The Receivers’ Fourth Report details that during the period from June 2021 to September 2023, there were several arbitrary transfers of Client AuM between IBA Accounts which appear to be directed at demonstrating to third parties that there was segregation of certain Beneficiaries’ Client AuM from others. The timing of these arbitrary transfers suggests that they were made primarily in response to financial regulatory investigations commenced in the US and the UK.
The Receivers have further investigated these matters and have provided an update in the Fifth Report, reaching the conclusion that the segregation of assets into different IBA Accounts does not constitute an effective segregation of Beneficiaries’ interests in a legal sense nor did it give rise to a ring fencing of assets to protect certain accounts from the shortfall.
15. Can the Receivers provide me with an updated investment statement?
As part of the entitlement verification process, Beneficiaries were provided with access to a Valuation Notice and supporting information.
If you have not yet received access to your Valuation Notice and have not otherwise received any communication from the Receivers relating to reasons why your Valuation Notice may have been withheld, please contact us as soon as possible at BriteAdvisorsValuation@mcgrathnicol.com.
Please note that the amount shown on your Valuation Notice is not the amount which will be distributed. Your Valuation Notice sets out the value of the assets that Brite Advisors ought to have held on your behalf as at 13 December 2023. The distribution amount will be calculated as proposed in the Explanatory Memorandum. Refer to FAQ 19 for further information pertaining to the Valuation Notice Process.
16. Can I withdraw funds?
As a result of the first Interim Distribution paid in the period from December 2025, the Receivers will not pay any further pension withdrawal payments that fall due in February 2026 or beyond. In relation to ad-hoc and/or hardship withdrawal requests, the Receivers will not be in a position to consider any new withdrawal or hardship requests.
Please refer to FAQ 6 for further details regarding the first Interim Distribution.
17. Can I transfer all my money to another fund?
In accordance with the Court’s orders dated 13 November 2025, the Receivers have taken steps in accordance with the Distribution Methodology Orders to prepare and execute the first Interim Distribution process. The Receivers have made cash payments for the first Interim Distribution to eligible Corporate Trustees and Beneficiaries during the period from December 2025. Please refer to FAQ 6 for an update on the status of the first Interim Distribution and matters requiring resolution before a second interim distribution can be paid.
18. Can I appoint a new Financial Advisor?
The appointment of a new Financial Advisor is a matter for you as a Beneficiary.
Should you appoint a new Financial Advisor, please advise our office (with documentary evidence) and we will update our records accordingly.
19. Beneficiary Valuation Notice Process
The Court Orders require the Receivers to calculate Beneficiaries’ entitlements by reference to the value of the money and investments which should have been held on behalf of each Beneficiary as at 13 December 2023.
The basis of the Receivers' calculation of each Beneficiaries' entitlement is set out in the Update to Trustees and Beneficiaries – Valuation Notice dated 12 November 2024, available here. In short, the Court Orders permitted the Receivers to adjust the 13 December 2023 Data to address various issues identified by the Receivers arising from Brite Advisors' recording of historical data (these issues are explained in the Receivers' update dated 23 October 2024 and detailed in the Twelfth Smith Affidavit). The adjustments made to the 13 December 2023 Data, included:
adjusting the dividend data to correct the material errors in the reporting of the dividends earned by Beneficiaries;
removing all withholding tax amounts applied to Beneficiaries investments; and
valuing the entitlements related to Minerva Notes at cost price.
The Receivers have undertaken these adjustments and produced Valuation Notices for all Beneficiaries.
The Court Orders establish a framework for Beneficiaries to access, review, and confirm or dispute their Valuation Notice.
A small number of Valuation Notices have been withheld. The Receivers have written to all Beneficiaries whose Valuation Notices have been withheld to explain why that is the case. If you have not yet received access to your Valuation Notice and have not otherwise received any communication from the Receivers relating to reasons why your Valuation Notice may have been withheld, please contact the Receivers as soon as possible at BriteAdvisorsValuation@mcgrathnicol.com.
It is important to note that the value of a Beneficiary's Client AuM set out in their Valuation Notice is not the amount that the Receivers propose to distribute to the Beneficiary from the Client AuM. The Valuation Notice sets out the value of the assets that Brite Advisors ought to have held on behalf of the relevant Beneficiary as at 13 December 2023. The final distribution amount will be calculated as set out in the Distribution Methodology Orders dated 15 September 2025 and by reference to the Valuation Notice. Beneficiaries and Corporate Trustees had the opportunity to provide feedback and ask questions in relation to the proposed method of distribution.
For various reasons stated in previous reports, including the variance in the Client Assets under Management (Client AuM), the comingled nature of Client AuM held by Brite Advisors and limited company records and access to Brite Advisors’ systems, the Receivers at present are unable to provide transaction histories and valuations other than as at 13 December 2023.
In accordance with the Court’s orders dated 13 November 2025, the Receivers have taken steps in accordance with the Distribution Methodology Orders to prepare and execute the first Interim Distribution process. The Receivers have made cash payments for the first Interim Distribution to eligible Corporate Trustees and Beneficiaries during the period from December 2025.
Please refer to FAQ 6 for an update on the status of the first Interim Distribution.
20. What does the Explanatory Memorandum propose?
On 15 September 2025, the Court made the Distribution Methodology Orders, which establish the framework for calculating and making distributions of the Trust Assets. These Orders were informed by the Receivers’ Explanatory Memorandum dated 4 December 2024 and Supplementary Explanatory Memorandum dated 25 March 2025, which are described in detail below.
In accordance with the Court’s orders dated 13 November 2025, the Receivers have taken steps in accordance with the Distribution Methodology Orders to prepare and execute the first Interim Distribution process. The Receivers have made cash payments for the first Interim Distribution to eligible Corporate Trustees and Beneficiaries during the period from December 2025.
Please refer to FAQ 6 for an update on the status of the first Interim Distribution.
The Explanatory Memorandum explains how the Receivers propose to distribute the Client AuM. Beneficiaries and Corporate Trustees were encouraged to read the document carefully, consider how it impacts them, seek appropriate legal and financial advice, and provide any feedback they wished to provide to the Receivers (Consultation Period).
The Consultation Period concluded on 31 January 2025.
The Receivers proposed that the distribution be made as follows.
Beneficiaries will fall into six different categories, which will determine what pool of assets they are entitled to claim against, and how their distribution will be determined. Some Beneficiaries may have claims in multiple categories.
Certain assets will be liquidated and pooled into a single fund, which is referred to as the ‘Deficient Mixed Fund’ in the Explanatory Memorandum at section 2.1.2, but includes all securities held on the Interactive Brokers Platform. Certain specific holdings, identified at (3) and (4) below, are excluded from the Deficient Mixed Fund. Those Beneficiaries with an entitlement to the Deficient Mixed Fund, will be distributed a share of these funds, net of the Receivers’ fees, costs and expenses (see section 3.3.17 of the Explanatory Memorandum) and any other amounts that the Court orders be withheld (including, for example, certain tax liabilities - see section 4.5 of the Explanatory Memorandum), proportionate to the value of their entitlement, which will have been confirmed in the Beneficiaries’ Valuation Notice. The effect of this is that these Beneficiaries will share equally in the shortfall.
Where Beneficiaries deposited cash into Brite Advisors’ bank account on or after 16 October 2023 and those funds were not transferred to the Interactive Brokers Platform, that cash and any interest earned will be returned to those Beneficiaries. A fee representing a proportionate share of fees, costs and expenses of the Receivers for their work in relation to those assets (along with any tax or other liability linked with the assets) will be payable by the Beneficiary or deductible from their distribution.
All structured notes held on the Moventum Platform in the GBP and USD accounts, as well as the cash proceeds of those notes, will be transferred back to the relevant Beneficiaries. A fee representing a proportionate share of fees, costs and expenses of the Receivers for their work in relation to the Moventum Platform Assets (along with any tax or other liability linked with the assets) will be payable by the Beneficiary / deductible from their distribution.
Any Beneficiary who held Minerva Notes as at 13 December 2023 will hold no rights to those notes and will instead have an entitlement to the Deficient Mixed Fund equal to the funds provided by the Beneficiaries to Brite Advisors to purchase those notes. Any recoveries relating to the Minerva Notes will be contributed to the Deficient Mixed Fund.
The total amount of each Beneficiary’s pension withdrawals received after 13 December 2023 (if applicable) will then be deducted from that Beneficiary’s distribution.
The Receivers wrote to individual Beneficiaries separately to advise which category or categories of Beneficiary you fell into, as set out in Appendix A of the Explanatory Memorandum.
Surrender Rebates and Interest Earned
Having considered all feedback provided to date, the Receivers’ view in relation to Surrender Rebates and interest has not changed and is as follows:
The Receivers remain of the view that the appropriate way to deal with the Surrender Rebates is for Surrender Rebates to be set-off against the positive value of the Beneficiaries' investments in calculating their entitlements. The primary reasons why the Receivers remain of this view is due to both (i) the legal position supporting the ability for the Surrender Rebates to be set-off, and (ii) the impact of the alternative, which would be for the burden of circa USD $16.7m of Surrender Rebates owing to Brite Advisors being borne by the entire Beneficiary population in proportion.
The Receivers remain of the view that it is not appropriate to credit interest in Beneficiaries’ portfolio. Their reasoning for this is outlined in detail at paragraph 54 to 62 of the Sixteenth Smith Affidavit (located, Filed by Receivers, Sixteenth Affidavit of Linda Methven Smith affirmed on 11 February 2025). The primary reasons why the Receivers remain of this view is due to both (i) no Beneficiaries have been paid interest on their cash holdings in the 13 December 2023 data at all (that is, all Beneficiaries are treated equally in not being credited interest), and (ii) no Beneficiary has identified a written entitlement, contractual or otherwise to be paid interest on their cash holdings. Finally, if interest was credited on all Beneficiaries’ cash positions, it would be a costly exercise for the Receivers and have the effect of increasing all Beneficiaries’ portfolios (albeit in different proportions).
As a result of feedback received from some Beneficiaries which indicated that they wanted the Surrender Rebate and interest issues brought before the Court, as they disagreed with the Receivers’ determination, the Receivers:
prepared and filed the Receivers and Managers’ Supplementary Report regarding Surrender Rebates and Interest dated 1 August 2025, link here which provides further details around Surrender Rebates and Interest and the nature of the disputes raised in respect of those matters; and
brought the Surrender Rebate and interest issues to the Court’s attention, with the matter listed for a half-day hearing on 15 September 2025.
As part of the Interim Distribution Application Orders made by Justice O’Sullivan on 15 September 2025, the Court endorsed two specific positions advanced by the Receivers in relation to the treatment of Surrender Rebates and Interest:
The Court confirmed that the Receivers would be acting properly and are justified in treating any balance of a Surrender Rebate as a deduction in the calculation of the respective Beneficiary’s total entitlement.
The Court further confirmed that the Receivers would be acting properly and are justified in not adding any interest to any cash holding recorded in the 13 December 2023 data.
How will I receive my distribution?
The Receivers proposed that the distribution would not be made all at once. Rather, it was proposed that an amount (which was not determined at the time the Explanatory Memorandum was issued) would be retained to cover potential liabilities and ongoing costs for matters that had not been resolved at the time of the first distribution.
Those Beneficiaries receiving notes transferred from the Moventum Platform would receive these instruments in specie (or cash if the notes have reached maturity). Otherwise, all other Beneficiaries' distribution would be made to their Corporate Trustee (where they have one) in the currency in which their account with Brite Advisors was denominated.
Are there any alternatives to the Receivers Proposal?
You should refer to section 5 of the Explanatory Memorandum for details. The Receivers have considered alternate approaches to the method of determining and making the distribution. The Receivers developed the proposal set out in the Explanatory Memorandum having regard to (i) the legal principles which apply to such a distribution, and (ii) prioritising a timely and efficient return of funds to Beneficiaries.
What role will the Corporate Trustees play in the distribution process?
Where a Beneficiary has a Corporate Trustee, the Receivers proposed to make the distribution payment as applicable, to that Corporate Trustee.
In addition, the Receivers decided to not seek any order which permits a Beneficiary to delay payments being made to their Corporate Trustee. Instead, the Receivers proposed to seek an amendment of the Asset Preservation Orders, and a direction that they could comply with a jointly issued payment direction in an approved form, to remove any barriers to Beneficiaries changing their Corporate Trustee.
This proposal reflects the Receivers’ position that the substitution of Corporate Trustees is a matter for Beneficiaries and Corporate Trustees and is intended to remove any barriers to Corporate Trustees and Beneficiaries undertaking this process themselves in accordance with the relevant pension regime.
Refer to FAQ 26 for further details in relation to changing your Corporate Trustee.
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21. Are the Receivers considering the jurisdictional tax implications as part of their distribution strategy?
As a general rule, either the trustee or the beneficiaries are liable for tax on the income of a trust and a receiver or liquidator will be liable for the taxation liabilities of a trustee company to which they have been appointed.
If the Receivers were liable for (i) any tax liabilities as a result of liquidating the Client AuM and making distributions to Corporate Trustees and Beneficiaries or (ii) liabilities arising from Brite Advisors’ historical operations, the Receivers would either retain an appropriate amount from the Client AuM to cover those liabilities or deduct the amount from distributions to Corporate Trustees or Beneficiaries. The Receivers have engaged appropriate international tax and legal advisers, to advise on the potential taxation consequences of the proposed distribution including engaging with the Australian Taxation Office (ATO). An update in respect of the position regarding resolving Australian and US tax matters are set out below.
Australian taxation matters
As set out in the Receivers’ update to Trustees and Beneficiaries dated 28 October 2025, the Receivers had sought taxation advice to calculate the potential worst vs best case scenario in relation to the potential quantum of Australian taxation liabilities the Receivers could be required to pay. These preliminary calculations indicated that the Australian taxation liabilities could be between AUD$10m and AUD$175m.
As set out in the Receivers’ update to Trustees and Beneficiaries dated 6 November 2025, the Receivers have filed two applications for Private Binding Rulings with the ATO which seeks to confirm how the income earned on the trust assets is to be treated from a taxation perspective. To date, the Receivers have received a Private Binding Ruling in relation to one of the issues, confirming the Receivers’ view that no capital gains tax is payable by Brite Advisors or the Receivers in respect of the liquidation and distribution of the Deficient Mixed Fund during the 2025/2026 financial year, resulting in a reduction in the estimated potential taxation liabilities by AUD$75m. This meant that as part of the Interim Distribution Application heard on 13 November 2025, the Receivers sought to withhold AUD$100m in respect of Australian taxation liabilities.
The second PBR application relates to a number of issues, which if found in favour of the Receivers’ position, could mean a further reduction of the amount set aside for potential Australian taxation liabilities of AUD$90m (i.e. from AUD$100m to AUD$10m).
Since the filing of the Second PBR Application, the Receivers have continued to liaise with the ATO as to the timing of any determination to be made in response to the application. Following conferral with the ATO, the Receivers have provided supplementary submissions in support of the Second PBR Application for the ATO's consideration. The Commissioner of Taxation has advised the Receivers that the outcome of the application will likely be provided in March 2026.
It is anticipated that the Receivers will be required to undertake a significant amount of work in dealing with Australian taxation matters, which will materialise following the outcome of the Second PBR Application, including:
the preparation and filing of historic tax returns;
obtaining orders from the Court in relation to the filing of tax returns and other secondary tax matters;
taking steps which may be required if the decision in relation to the Second PBR Application is unfavourable to the Beneficiaries and/or to deal with assessments which arise following the filing of the tax returns; and
arranging payment of assessed tax liabilities (to the extent ordered by the Court).
The ATO has indicated that 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 resolution of the above matters is unknown and the Receivers will continue to confer with the ATO in respect of the Second PBR Application and seek to progress resolution of the Australian tax matters as quickly as possible. The Receivers will keep Corporate Trustees and Beneficiaries updated as these taxation matters are progressed.
US taxation matters
As outlined in the Receivers’ circular dated 19 November 2025, an amount of USD$10.2m 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 which will outline (i) the position in relation to the US tax liabilities (including the estimated value of the US tax liabilities), (ii) how this will impact future distributions to Corporate Trustees/Beneficiaries, and (iii) what will be reported to the Corporate Trustees/Beneficiaries. The paper is intended to support orders sought by the Receivers in relation to the filing of US tax returns (which have been prepared).
The Receivers will seek publication orders to publish this paper once prepared and seek feedback from interested parties in relation to the Receivers’ proposal, which will be provided to the Court for consideration.
Similar to the position with Australian tax, once orders are obtained from the Court and the US tax returns are filed, the Receivers will be required to deal with any assessments which arise following filing of the US tax returns and arrange payment of assessed tax liabilities (to the extent ordered by the Court).
At this stage, the timing of resolution of the above matters is unknown and the Receivers will continue to progress resolution of the US tax matters as quickly as possible. The Receivers will keep Corporate Trustees and Beneficiaries updated as US taxation matters are progressed.
22. Distribution Methodology Application
On 15 September 2025, the Court made Distribution Methodology Orders, which establish the framework for calculating and making distributions of the Trust Assets. These Orders were informed by the Receivers’ Explanatory Memorandum dated 4 December 2024 and Supplementary Explanatory Memorandum dated 25 March 2025, which are described in detail at FAQ 20.
In accordance with the Court’s orders dated 13 November 2025, the Receivers have taken steps in accordance with the Distribution Methodology Orders to prepare and execute the first Interim Distribution process. The Receivers have made cash payments for the first Interim Distribution to eligible Corporate Trustees and Beneficiaries during the period from December 2025.
Please refer to FAQ 6 for an update on the status of the first Interim Distribution.
23. Access to Company Books and Records
The books and records of Brite Advisors do not accurately record the account position of individual Beneficiaries, and on appointment, the Receivers did not have access to all the systems required to commence the process of verification of Beneficiaries' entitlements.
The Receivers have worked to resolve this position and have been in continual communication, since appointment, with Brite Advisors’ respective information platforms, namely:
Interactive Brokers Australia (IBA)
The Receivers, together with the Interim Fund Manager have full access to all of Brite Advisors’ IBA accounts.
Salesforce
As Beneficiaries are aware, Brite Advisors’ custom built SalesForce platform and all relevant Beneficiary portfolio reporting data and documentation was inadvertently deleted by SalesForce in late April 2024. The Receivers worked with SalesForce to rebuild the SalesForce org utilising back up data and the SalesForce rebuild completed in early-September 2024.
The Receivers have used the Salesforce platform to assist with verification of Beneficiaries’ entitlements and the first Interim Distribution process.
24. Unauthorised Communications to Beneficiaries and Trustees
The Receivers are aware that some Beneficiaries have received communications from either a party purporting to provide “Brite Client Help” or former Brite financial advisors
The Receivers have not authorised any communication and have no affiliation with the group purporting to provide “Brite Client Help” or former Brite financial advisers, nor have the Receivers shared, or consented to the sharing of, any personal Beneficiary data.
We encourage you to carefully consider whether you should provide any personal information to the persons purporting to provide support as offered in the communication.
Please note, for the avoidance of doubt, any communications concerning the Client AuM issued to you by any persons other than the Receivers and their firm, McGrathNicol, are not authorised by the Receivers. If you receive any communications regarding the Client AuM and are unsure of whether it has been authorised by the Receivers, please contact us at briteadvisors@mcgrathnicol.com. We strongly caution Trustees and Beneficiaries against interacting with these third parties in respect of the Client AuM.
25. Payment of Advisory and Trustees’ Fees
The Receivers are of the view that the Advisory and/or Trustees’ fees are not trading expenses of Brite Advisors and therefore, they are unable to pay them while the current asset preservation orders remain in place.
26. Beneficiaries' concerns about their Trustees
The Receivers have received correspondence from several Beneficiaries indicating concern regarding their Trustee's independence or connection with Brite Group entities or associates. The Receivers maintain the position that the relationship between Beneficiaries and Corporate Trustees is a matter for them, and that the Beneficiaries who have concerns about their Corporate Trustee should seek their own advice and take steps to address that concern as appropriate.
Refer to FAQ 20 which provides further details as to what role Corporate Trustees have played in the distribution process.
Any Beneficiary wishing to change their Corporate Trustee which receives their distribution (by the process outlined in our circular dated 4 August 2025) must submit a fully signed trustee substitution form to the Receivers. Please note that it is too late to change your Corporate Trustee for the purposes of the first Interim Distribution and any substitution forms received going forward will only change your Corporate Trustee and recipient of any further distributions made.
27. AFCA – Compensation Scheme of Last Resort (CSLR).
Cancellation of Brite Advisors’ AFSL
On 8 April 2025, the Australian Securities and Investments Commission (ASIC) wrote to the Receivers:
confirming that automatic cancellation of Brite Advisors' Australian Financial Services Licence (AFSL) had been triggered pursuant to section 915B(3B) of the Corporations Act 2001 (Cth) (Act); and
inviting the Receivers to make submissions relating to that forthcoming cancellation, including whether the Receivers sought conditional continuation of the AFSL, and, if so, what licence specifications under section 915H of the Act may be required to ensure the appropriate administration of the Client AuM.
Having taken appropriate specialist advice on the issue, the Receivers formed the view that maintenance of the AFSL was only required to preserve, to the extent possible, any eligible Beneficiaries' entitlement to lodge a complaint with the Australian Financial Complaints Authority (AFCA), which is a pre-requisite to making a claim on the Compensation Scheme of Last Resort (CSLR).
On 29 April 2025, ASIC gave notice of its decision to cancel Brite Advisors' AFSL with conditions, effective 29 April 2025. Those conditions were consistent with the Receivers' submissions to ASIC. ASIC has confirmed that the conditional AFSL will continue in effect until 29 April 2026.
The cancellation of the AFSL will have no direct impact on the Receivership, or the ability of the Receivers to continue to undertake the matters they have been appointed by the Federal Court to undertake.
Notice of Intention to expel Brite Advisors from AFCA Membership
On 21 March 2025, Brite Advisors received a notice from the Australian Financial Complaints Authority (AFCA) advising that the AFCA Board are considering expelling Brite Advisors from AFCA membership on 13 May 2025. Brite Advisors had until 15 April 2025 to provide written submissions outlining the reasons why they believe Brite Advisors should not be expelled.
The Receivers understood that if Brite Advisors was expelled from AFCA membership, AFCA would not be able to consider any complaint by Beneficiaries or any other person in respect of Brite Advisors’ conduct made after the date of expulsion. An AFCA determination in favour of the complaint with compensation awarded is a pre-requisite to any person's ability to raise a claim with Australia's Compensation Scheme of Last Resort (CSLR).
This meant that, if Brite Advisors was expelled from AFCA membership, Beneficiaries who may have been otherwise eligible to raise a claim with the CSLR would be prevented from doing so.
Subsequent to receiving the notice from AFCA, the Receivers:
engaged with representatives from AFCA, CSLR and the Australian Securities and Investments Commission (ASIC) to raise their concerns and understand the implications of the proposed expulsion; and
filed their written submissions with AFCA objecting to the proposal to expel Brite Advisors from AFCA membership.
AFCA Membership maintained
On 1 May 2025, AFCA wrote to the Receivers confirming that, in light of ASIC's decision to cancel Brite Advisors' AFSL with conditions, effective 29 April 2025:
the AFCA Board will not be proceeding to consider the proposed expulsion of Brite Advisors at its meeting on 13 May 2025; and
the AFCA Board will likely consider the potential expulsion of Brite Advisors at or about 29 April 2026.
AFCA Membership proposed expulsion
On 4 December 2025, the Receivers received a further notice from AFCA confirming that a meeting of the AFCA Board would occur on 24 February 2026 at which the Board would consider the expulsion of Brite Advisors from membership of the AFCA.
AFCA Membership retained
On 2 March 2026, AFCA advised the Receivers that the AFCA Board has determined not to expel Brite Advisors from AFCA membership at this time. AFCA further confirmed that, although expulsion is not occurring now, the Board may reconsider expulsion at a future date.
This decision means that Brite Advisors remains a member of AFCA for the time being. Accordingly Corporate Trustees and Beneficiaries may continue to lodge complaints with AFCA, subject to AFCA’s normal jurisdictional limitations for insolvent financial firms.
I note there is no change to the status of any complaint already lodged with AFCA. Those complaints will continue to proceed as they were submitted while Brite Advisors remained an AFCA member.
Next steps
Corporate Trustees and Beneficiaries do not need to take any action in response to this update. If you are considering whether to lodge a complaint with AFCA, you may continue to do so while Brite Advisors remains a member.
The Receivers will continue to monitor AFCA’s position closely and will update Corporate Trustees and Beneficiaries if AFCA gives further notice or if circumstances change.
The Receivers will continue to liaise with AFCA in relation to the complaints that have been filed by Corporate Trustees or Beneficiaries, and any future complaints filed by any Corporate Trustees or Beneficiaries who consider themselves eligible to do so with AFCA.
criteria
AFCA will consider a wide range of complaints from consumers and small business about financial firms. In order to make a complaint:
the complainant must be eligible to complain;
the complaint needs to be about a financial firm that is an AFCA member, including its employees and agents;
there must be sufficient connection to Australia;
the complaint must be made within relevant time limits; and
the complaint cannot be excluded by AFCA’s Rules.
More information including how to lodge a claim and eligibility can be located on AFCA’s webpage, link below.
AFCA's Rules | Australian Financial Complaints Authority (AFCA)
The Receivers consider certain Beneficiaries may be eligible to make an AFCA complaint and recommend that Beneficiaries seek their own independent advice regarding their eligibility.
Australia’s CSLR - eligibility criteria
The CSLR provides compensation of up to AUD$150,000 to eligible consumers who have an unpaid determination from AFCA relating to the following types of financial services:
Personal financial advice provided to retail clients on relevant financial products.
Dealing in securities for retail clients (but not issuing securities).
Providing credit (where a financial firm provides funds).
Arranging credit (where someone like a mortgage or finance broker arranges funds).
It is important to note that the AFCA complaint process must first be successfully completed before a claim can be lodged with the CSLR.
More information including how to lodge a claim can be found on the CSLR website, link: CSLR website
Beneficiaries should seek their own independent advice regarding their eligibility before making a claim.
Links:
28. Filing of US Tax Returns
The Receivers have received correspondence from a number of US resident Beneficiaries, requesting information in order to complete their US tax return.
The Receivers are unable to provide any asset valuation, noting the factors previously advised, including but not limited to (i) the comingled nature of Client Assets under Management (Client AuM) held by Brite Advisors, (ii) limited company records and access to Brite Advisors’ systems, and (iii) the variance in the Client AuM that the Receivers have identified and that the quantum of the shortfall varies with time and may materially change due to a number of factors.
It should be noted that the Valuation Notice as at 13 December 2023 available to Beneficiaries via the Salesforce portal (for those Beneficiaries who have completed the identity verification process), sets out the value of the assets that Brite Advisors represented it held on your behalf as at 13 December 2023. It is not a valuation of the assets that are in fact held by Brite on your behalf nor is it the amount that the Receivers propose to distribute to you from the Client AuM.
Beneficiaries’ Valuation Notice as at 13 December 2023 and associated transaction report is able to be downloaded from Salesforce to enable you to provide it to your tax advisor if required. The option to download data is shown at section 4 of the Salesforce user guide, available here, which outlines that this is available to each beneficiary by clicking on the “printable view” icon.
The Receivers recommend that you obtain your own tax advice.
29. FAQ on Explanatory Memorandum
The Receivers created this FAQ to help clarify some of the common questions and themes that arose from the Feedback on the Explanatory Memorandum dated 4 December 2024.
All feedback on the Receivers' proposed distribution methodology has been considered by the Receivers and was responded to in the supplementary explanatory memorandum, which was lodged with the Courts on 25 March 2025. That document also explained any changes that the Receivers have made to the proposed distribution methodology as a result of that feedback or their further work since the Receivers and Managers’ Explanatory Memorandum was published.
30. Minerva Notes
The Explanatory Memorandum dated 4 December 2024 set out the Receivers’ proposed treatment of Minerva Notes. The Receivers proposed that:
Beneficiaries at 13 December 2023, with a historical cash impact of previously being invested in Minerva Notes, would be valued at (essentially) cost; and
Beneficiaries who still have Minerva Notes have an entitlement to the Deficient Mixed Fund in respect of the value (i.e. cost) of those notes.
The Receivers’ proposal was to essentially to treat the Minerva Notes in the same way Brite Advisors treated the notes. Any recoveries relating to the Minerva Notes would be contributed to the Deficient Mixed Fund.
Subsequently, the Receivers received feedback from a Corporate Trustee on the Receivers’ proposed course of action which raised points that had some merit from a legal principle perspective. That Corporate Trustee argued that Minerva Notes still held by Beneficiaries should be valued at nil, and the ‘sale’ of Minerva Notes in the past should be reversed with the effect that those are also valued at nil.
In considering the Corporate Trustee’s feedback, the Receivers prepared a Supplementary Report regarding Minerva Notes dated 2 May 2025. The Supplementary Report regarding Minerva Notes is a factual report only, the purpose of which was to bring facts of the matter to the Court’s attention.
Ultimately, the Receivers remained supportive of the proposed treatment of the Minerva Notes set out in the Explanatory Memorandum, being that Beneficiaries who held Minerva Notes as at 13 December 2023 are entitled to the Deficient Mixed Fund equal to (essentially) the cost price of the notes.
The Court considered this issue at the Distribution Methodology Hearing on 15 September 2025 and the Court has endorsed the Receivers’ proposed treatment. This means that any Beneficiary who held Minerva Notes as at 13 December 2023 will hold no rights to those notes and will instead have any entitlement to the Deficient Mixed Fund equal to the funds provided by the Beneficiaries.
31. Interim Distribution Calculation
To help beneficiaries understand how the interim distribution has been calculated, the Receivers have (i) prepared an infographic that sets out the methodology in simple terms, and (ii) set out below detailed explanations in respect of several aspects of the distribution calculation which have been commonly queried by Beneficiaries.
Infographic
When reviewing the infographic, please keep in mind that the calculation approach has (i) been endorsed by the Court through formal Court Orders (including the attached Interim Distribution Orders dated 13 November 2025), and (ii) been previously explained to beneficiaries through regular circulars and reports. These materials remain available on the Receivers’ website under sections 2, 3 and 4, here: https://www.mcgrathnicol.com/creditors/brite-advisors-pty-ltd/.
This infographic is a simplified guide only and is not intended to replace those more detailed documents.
Currency conversions
FX conversion at the entitlement stage
The distribution methodology approved by the Court effectively gives all Beneficiaries who should have had assets on the IB platform an interest in all the assets held on the IB platform, proportionate to the value of their entitlement, from 13 December 2023.
The assessment of each Beneficiary’s entitlement as at 13 December 2023 did not involve any actual conversion of cash from one currency to another. It also did not create any FX risk for Beneficiaries. That is because denominating an entitlement in USD did not change any Beneficiary’s actual currency exposure. The entitlement determines what share, as a percentage, each Beneficiary receives from the Deficient Mixed Fund. It is similar to receiving units in a mutual fund. Accordingly, the measurement of entitlements in USD (as opposed to another currency) is immaterial to the value a Beneficiary will ultimately receive. Measuring entitlements in GBP, EUR, AUD or any other currency would have resulted in each Beneficiary having the same proportionate entitlement to the Deficient Mixed Fund. Determining an entitlement as at 13 December 2023 was effectively like each Beneficiary receiving units in a mutual fund from that date. The size of each Beneficiary’s share was simply a comparison of the value of their entitlement to the entitlements of all other Beneficiaries.
Although Brite Advisors should have held assets for each Beneficiary, which may have been denominated in currencies other than USD or cash in currencies other than USD, the value of what Brite Advisors should have held for each Beneficiary needed to be converted into a single currency, so it could be compared with other Beneficiaries' entitlements. USD was chosen to be that currency. Applying the FX rate as at 13 December 2023 is appropriate because from that date, Beneficiaries are treated as having a proportionate entitlement to the Deficient Mixed Fund.
FX conversion at the distribution stage
The value of all interim distributions to be paid was calculated in USD on 9 December 2025. Corporate Trustees were told that they would be paid in the reporting currency of their underlying Beneficiaries’ Valuation Notices (which may have been a currency other than USD), unless otherwise advised by the Corporate Trustee. Where a currency other than USD was to be paid, the payment amount was to be calculated at the time of calculation of the distribution (which was 9 December 2025). Beneficiaries are not exposed to any currency risk. Their distribution from the Deficient Mixed Fund is calculated on 9 December 2025 and Corporate Trustees had the option to receive this in the reporting currency or some other currency, which is converted on the same day as their distribution is calculated. It is appropriate to use 9 December 2025 as the appropriate date because that is when the distribution was calculated.
Impact
Beneficiaries should not be concerned that the conversion of entitlement in December 2023 into USD then back into another currency in December 2025 results in an FX loss. The process adopted as explained above gave all Beneficiaries an entitlement to a proportionate share in the Deficient Mixed Fund, which held various assets. No actual currency conversions of cash took place at this time. The currency in which entitlements were expressed are immaterial to the proportional entitlement to the Deficient Mixed Fund and immaterial to a Beneficiary’s distribution payment calculated some two years later.
In November and December 2025, a majority of the assets in the Deficient Mixed Fund were sold, generating cash. The cash generated by this exercise was divided up in December 2025 for distribution by reference to the proportionate entitlements which had been identified in December 2023. The Deficient Mixed Fund does bear currency risk during this period.
Interim distribution rate
The Receivers advised Beneficiaries that the interim distribution rate was 85% as a way to contextualise the interim distribution. It is important to understand that this figure represents the rate of the distribution in USD only (i.e. total amount available to pay to Beneficiaries in USD / the total entitlements owing to Beneficiaries in USD as at 13 December 2023). The interim distribution was not calculated by multiplying each Beneficiary’s entitlements by this USD rate, noting not all Valuation Notices are reported in USD. Accordingly, Beneficiaries will not be able to check their interim distribution amount by multiplying their Valuation Notice amount by 85%. This is because the return when measured in a different currency will not be the same.
Portfolio Growth
Distributions have not been adjusted for the growth of the fund. It is correct that the value of the Deficient Mixed Fund has grown due in large part to the positive performance in the broader market, which was factored into the value of the Deficient Mixed Fund available for the interim distribution. However, the Court endorsed approach assesses Beneficiaries’ entitlements as at 13 December 2023. Any growth in the assets which Brite Advisors should have held for individual Beneficiaries between 13 December 2023 and the interim distribution therefore does not impact that Beneficiaries’ Valuation Notice at 13 December 2023. This issue is addressed comprehensively in the Receivers and Managers’ Supplementary Report regarding Growth since 13 December 2023 dated 23 July 2025, which was provided to the Court, and is available here.