The Government has introduced The Investment Bank Special Administration Regulations 2011 and The Investment Bank (Amendment of Definition) Order 2011 into Parliament. One of the objectives of this legislation is to ensure that client assets and money held on trust by an investment firm can be returned by an administrator as quickly as possible in the event of the investment firm's insolvency. This legislation is expected to come into force this year. HM Treasury has now abandoned the idea of establishing a Client Assets Agency or Client Assets Trustee which it first mooted in its December 2009 paper "Establishing resolution arrangements for investment banks".
This article was first published on www.complinet.com on 31 January 2011.