Subject to certain exceptions, the use of general liens in custody agreements will be prohibited from 1 March 2011. Transitional provisions are available to firms to enable them to re-paper agreements in the period before 1 October 2011. The FSA will perform a post-implementation review of the prohibition of general or omnibus liens during Q4 2011.

This article was first published on www.complinet.com on 31 January 2011.