I do not believe for one moment that Ed Miliband has any part in his brother's Roderick Spode antics.
Time was when Labour used to proscribe and expel parties within the party. Never mind parties bankrolled by the man who bankrolled the SDP, and who was later made a Minister by Blair without the rate for the job. The proposed financial arrangement here is flagrantly illegal. But don't expect anything to be done about it.