New special administration regime for investment banks

A new special administration procedure for investment banks has been created by the introduction of The Investment Bank Special Administration Regulations 2011 (the “Regulations”). An administrator appointed under the Regulations will have new special administration objectives which include:

  • to return client property as soon as reasonably practicable; and
  • to co-operate with the markets in resolving failed trades.

Other key changes introduced by the Regulations are:

  • administrators will be able to set a bar date for asset claims;
  • the rules governing losses for shortfalls of client securities are clarified; and
  • suppliers of key services are obliged to continue to supply them to the administrator.

For our briefing on the Regulations and how, if at all, they may impact on the law and practice of administering a failed investment bank, please click here.

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