The court was asked to interpret the provisions as to ‘client money rules’ and ‘client money distribution rules’ in the FSA handbook, and to consider the consequences as to the applicable trusts. Substantial sums paid by clients to the bank before its insolvency were now unavailable.
Held: The appeal failed. The statutory trust under the scheme arose on receipt of client money, and not on its later segregation; the primary pooling arrangements applied to client money in house accounts; and, participation in the CMP was not dependant on the segregation of client money.
Judges:
Lord Hope, Deputy President, Lord Walker, Lord Clarke, Lord Dyson, Lord Collins
Citations:
[2012] UKSC 6, UKSC 2010/0194, [2012] 3 All ER 1, [2012] 1 BCLC 487, [2012] WLR(D) 53, [2012] Bus LR 667
Links:
Bailii, Bailii Summary, SC C Summ, SC
Statutes:
Insolvency Act 1986, Markets in Financial Instruments Directive 2004/39/EC
Jurisdiction:
England and Wales
Citing:
At first instance – Lehman Brothers International (Europe) v CRC Credit Fund Ltd and Others ChD 15-Dec-2009
. .
See Also – Lehman Brothers International (Europe) v CRC Credit Fund Ltd and Others ChD 20-Jan-2010
. .
Appeal From – CRC Credit Fund Ltd and Others v GLG Investments Plc (Sub-Fund: European Equity Fund) and Others CA 2-Aug-2010
. .
Lists of cited by and citing cases may be incomplete.
Insolvency, Financial Services
Updated: 05 October 2022; Ref: scu.451702
