From Lehman to Bloxham: What Next for the Special Administration Regime?
By David Ereira
In the aftermath of the Bloxham report, HM Treasury is consulting on proposed changes to the Special Administration Regime while the Financial Conduct Authority is carrying out a simultaneous review of the relevant CASS rules.
One of the key Bloxham proposals that the government plans to adopt is an extension of the bar date to include client money claims.
There are limitations to the proposed reforms. For example, in relation to client money the reforms arguably do not extend far enough to address and resolve all the client money issues which have been exposed since the SAR’s creation. Moreover, there is a strong case for carrying out a more radical review of the law under which client entitlements can arise and whether it is appropriate to continue to rely on property, trust and insolvency law concepts in the context of fast moving and intangible rights of modern and sophisticated investment markets.
This first appeared in Corporate Rescue and Insolvency, June 2016.