The Lehman client money judgment: the Court of Appeal overturns key aspects of the High Court decision

Resource type: Article

Status: Published on 19-Aug-2010

Jurisdiction: United Kingdom

In this article, Patrick Buckingham, a partner in Herbert Smith LLP's Financial Services Regulatory Group, Stephen Gale, a partner in the firm's Restructuring and Insolvency Group, and Laura Reynolds, an associate in the firm's Financial Services Regulatory Group, consider the implications of the decision of the Court of Appeal in CRC Credit Fund Ltd & Ors v GLG Investments Plc Sub-Fund: European Equity Fund & Ors [2010] EWCA Civ 917 (02 August 2010). This decision represents the current state of law in relation to the FSA's client money rules in its Client Assets sourcebook (CASS) and its implications should be considered by creditors of Lehman Brothers International (Europe) and by other FSA regulated firms and their clients.

This article discusses the main aspects of the Court of Appeal's judgment, its potential impact and the likely next steps.

NOTE ADDED ON 21 SEPTEMBER 2011: The Supreme Court hearing of the appeal from the Court of Appeal judgment is scheduled for 31 October 2011 (see Supreme Court, Case details, UKSC 2010/0194).

NOTE ADDED ON 8 NOVEMBER 2011: The Supreme Court hearing of the appeal from the Court of Appeal judgment concluded on 3 November 2011. Judgment is expected in the first quarter of 2012 (see PwC, Client Money Update).

NOTE ADDED ON 24 FEBRUARY 2012: The Supreme Court is to hand down its judgment on the appeal from the Court of Appeal decision on 29 February 2012 (see Legal update, Supreme Court to give judgment on Lehman client assets case on 29 February 2012).

Herbert Smith LLP

Register for free access

To access this resource and thousands more, register for a free, no-obligation trial of Practical Law. Register using the button below, telephone +44 (0)20 7202 1220 or e-mail info@practicallaw.com.

A free trial will give you:

✔ Unlimited access to Practical Law online know-how
✔ Thousands of market standard documents and clauses
✔ Daily alerts and weekly update e-mails on key legal developments in your practice area
 

Register

Log in

To access this resource, log in below or register for free access.

Contact us

Our customer services team are available every working day 8.30am to 7pm (GMT).

Actions
Resource information
Show resource details Hide resource details
  • Resource ID: 5-503-0513
  • Published: 19-Aug-2010
  • Products:  PLC UK Finance, PLC UK Financial Services, PLC UK Restructuring and Insolvency
Ask a question
Print
Related content
Related content
Topics
Practice notes
Article
Legal update: archive
{ "siteName" : "PLC", "objType" : "PLC_Doc_C", "objID" : "1247389957505", "objName" : "The Lehman client money judgment the Court of Appeal overturns ", "userID" : "2", "objUrl" : "http://crossborder.practicallaw.com/cs/Satellite/5-503-0513?source=relatedcontent", "pageType" : "", "contentAccessed" : "false", "analyticsPermCookie" : "2-12b281d6:13ebdd7a62e:-46fd", "analyticsSessionCookie" : "2-12b281d6:13ebdd7a62e:-46fc", "statisticSensorPath" : "http://analytics.practicallaw.com/sensor/statistic" }