Shearman & Sterling LLP | FinReg | Final UK Legislation to Amend the Special Administration Regime for Investment Firms Published
Financial Regulatory Developments Focus
This links to the home page
Financial Regulatory Developments Focus
FILTERS
  • Final UK Legislation to Amend the Special Administration Regime for Investment Firms Published

    03/17/2017

    The Investment Bank (Amendment of Definition) and Special Administration (Amendment) Regulations 2017 have been published. The Amending Regulations aim to improve the return of client money when an investment firm fails. The changes are in line with the Bloxham Report's recommendations on minimizing the market impact of a failed firm's entry into special administration. The Amending Regulations amend the scope of the SAR regime to include firms that manage an alternative investment fund or Undertakings for the Collective Investment of Transferable Securities or who act as a trustee or depositary for such an AIF or UCITS. The Amending Regulations will make easier the transfer of client assets from a failing firm, as it removes restrictions on transfers, limitations on what may be assigned and requirements to obtain client consent. The Amending Regulations also strengthen the bar date mechanism (which requires a reasonable time to pass before the calculation/submission of claims to the administrator) and provide continuity of safe custody services. The Amending Regulations come into force on April 6, 2017.

    View the Amending Regulations

    View the Bloxham Report.