UK High Court Judgment in MF Global Special Administration on “Hindsight Application”
Today the UK High Court handed down judgment on the MF Global UK Limited “Hindsight Application”. The Court ruled that “the hindsight principle is not applicable to the determination of claims to client money for the purposes of a distribution under CASS 7A”.
Pursuant to the FSA’s CASS Rules, in the normal course of business, investment firms are required to segregate money received from, or held for, their clients and hold it on trust for them. Upon the occurrence of a primary pooling event, such as the appointment of the Administrators to MF Global UK Limited, such trust monies are notionally pooled and must be distributed among the clients on a pro rata basis according to their entitlements.
Read the full article here.
Pursuant to the FSA’s CASS Rules, in the normal course of business, investment firms are required to segregate money received from, or held for, their clients and hold it on trust for them. Upon the occurrence of a primary pooling event, such as the appointment of the Administrators to MF Global UK Limited, such trust monies are notionally pooled and must be distributed among the clients on a pro rata basis according to their entitlements.
Read the full article here.
Contributor(s)
More from the Weil European Restructuring Blog
This website is maintained by Weil, Gotshal & Manges LLP in New York, NY © 2020 Weil, Gotshal & Manges LLP, All Rights Reserved. The contents of this website may contain attorney advertising under the laws of various states. Quotation with attribution is permitted. This publication is provided for general information purposes only and is not intended to cover every aspect of the purpose for the law. The information in this publication does not constitute the legal or other professional advice of Weil London or the authors. The views expressed in this publication reflect those of the authors and are not necessarily the views of Weil London or of its clients. These materials may contain attorney advertising. Prior results do not guarantee a similar outcome.