Treasury has made the Investment Bank Special Administration Regulations 2011, which were made on 7 February and came into force on 8 February. The Regulations create a special administration regime for defined investment banks to ensure that client trust property is returned promptly in the event of insolvency. The regime covers authorised firms that:

  • safeguard and administer investments, deal in investments as principal and/or deal in investments as agent;
  • hold client assets (which now includes client money in certain circumstances, see above); and
  • is incorporated or formed under the law of any part of the UK.

The regime obliges administrators to follow three special objectives and gives administrators and regulators other powers in respect of setting bar dates for claims, allocation of shortfalls in an omnibus account and continuity of service arrangements. (Source: 2011 No 245 and Explanatory Notes)