Ask the Professor: How Does the U.K. Client Money Rules Differ from the U.S. Customer Segregated Rules When the Custodian Firm Fails to Treat Customer Property Properly?
Ronald H. Filler
New York Law School
The Journal of the Law of Investment & Risk Management, "The Futures & Derivatives Law Report", Vol. 30, No. 11
NYLS Legal Studies Research Paper No. 10/11 #12
This article compares the client asset protection regimes between the U.K. and the U.S., and then examines their differences in these jurisdictions when a large global brokerage firm, in this case, Lehman Brothers, files for bankruptcy and how such an insolvency proceeding impacts the customers of the failed firm in the two jurisdictions. While the regulatory customer asset protections in place in both countries are designed to provide important customer protections, in reality, the U.K. regulatory structure needs dramatic changes as do the U.K. bankruptcy laws, to enhance its customer protections schemes.
Number of Pages in PDF File: 5
Keywords: FSA, CFTC, Lehman Brothers, Client Money Rules, Customer Segregation, Customer Assets, Bankruptcy
Date posted: December 8, 2010