Regulator settles with Lehman
As we have reported before, a £184 million settlement with the administrators of the Lehman bank group after six years of legal action has shown the Regulator’s mettle and the bargaining strength in its anti-avoidance powers.
The Regulator fought off some procedural challenges during the early stages of its move for a financial support direction (FSD) but, in the end, no FSD was issued. The settlement for the full deficit suggests the administrators recognised the Regulator had a strong hand.
When the Regulator’s powers to issue FSDs and contribution notices were created, there was a lot of comment on their strength and their radical nature (e.g. effectively to pierce the corporate veil). Ten years on, despite some court action exploring certain aspects, we still know little about the true scope of the powers.