Clifford Chance

The Lehmans Supreme Court Judgment and Client Money: Further Reflections

23 March 2012

Now that the Supreme Court has given its judgment on certain issues concerning client money held by Lehman Brothers International (Europe) Limited ("LBIE") at the time its administration proceedings commenced, we seem to have some clarity on the application of the CMR to client money held by a firm in the context of MiFID business where such firm is insolvent. However, as indicated by the fact that the conclusions on two of the three issues were only determined by a majority of three to two, the issues are not clear-cut. Moreover, the points regarding which there is now a clear ruling are likely to give rise to further questions.

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