Source: All England Reporter
Publisher Citation: [2012] All ER (D) 193 (Feb)
Neutral Citation: [2012] UKSC 6
Court: Supreme Court
Judge:

Lord Hope DP, Lord Walker, Lord Clarke, Lord Dyson and Lord Collins

Representation Antony Zacaroli QC, David Allison and Adam Al-Attar (instructed by Allen & Overy LLP) for GLG.
  Jonathan Crow QC, Jonathan Russen QC and Richard Brent (instructed by Field Fisher Waterhouse LLP) for Lehman Brothers Finance AG.
  Jonathan Crow QC, Jonathan Russen QC and Richard Brent (instructed by Norton Rose LLP) for Lehman Brothers Inc.
  Robert Miles QC and Richard Hill (instructed by Simmons & Simmons) for CRC Credit Fund Ltd.
  Iain Milligan QC, Rebecca Stubbs and Richard Fisher (instructed by Linklaters LLP) for the administrators.
  David Mabb QC and Stephen Horan (instructed by the FSA) for the FSA.
Judgment Dates: 29 February 2012

Catchwords

Company - Administration - Client funds - Company providing services for clients wishing to invest in securities - Client money paid into company's accounts with intention to segregate - Company failing to identify and aggregate client money - Interpretation of relevant provisions in Client Assets Sourcebook (CASS) issued by Financial services Authority - Four relevant issues appealed to Court of Appeal - Appeal to Supreme Court proceeding in respect of three issues - Whether statutory trust created - Whether participation in notional client money pool dependent on actual segregation of client money - Whether primary pooling arrangements applying to client money held in house accounts - - CASS 7, 7.7.2R, 7.9.7R.

The Case

Company - Administration - Client funds - Company providing services for clients wishing to invest in securities - Client money paid into company's accounts with intention to segregate - Company failing to identify and aggregate client money - Interpretation of relevant provisions in Client Assets Sourcebook (CASS) issued by Financial services Authority - Four relevant issues appealed to Court of Appeal - Appeal to Supreme Court proceeding in respect of three issues - Whether statutory trust created - Whether participation in notional client money pool dependent on actual segregation of client money - Whether primary pooling arrangements applying to client money held in house accounts - - CASS 7, 7.7.2R, 7.9.7R. . In proceedings concerning the administration of Lehman Brothers International (Europe) (LBIE), the Supreme Court upheld the decision of the Court of Appeal in relation to three issues involving the constitution of a client money fund for clients (whose money should have been segregated by LBIE from its own accounts into separate client money accounts) in the course of which it interpreted Ch 7 of the Client Asset Sourcebook (CASS 7), issued by the Financial Services Authority pursuant to of the Financial Services and Markets Act 2000.

Practice Areas

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