The Investment Bank Special Administration Regulations 2011

[F1 Objective 1—post-administration reconciliation of accounts and records relating to client money U.K.

10H.— (1) Immediately after being appointed as the administrator, the administrator must carry out a client money reconciliation in accordance with paragraph (2) and make any transfer required by paragraph (3) or (4).

(2) The client money reconciliation must—

(a) be carried out in accordance with the method for carrying out client money reconciliations adopted by the investment bank to meet client money rules, whether or not the method adopted is in compliance with those rules;

(b) be based on records and accounts of the investment bank as they stood immediately after the last such reconciliation by the investment bank (but taking no further account of money received, or payments, transfers or transactions made, by the investment bank of which account was taken for the purposes of that reconciliation); and

(c) take account of money received, and payments, transfers and transactions made, by the investment bank after the last such reconciliation and before the appointment of the administrator.

(3) Where the client money reconciliation shows that amount A exceeds amount B, the administrator must transfer an amount equal to the difference from the investment bank’s own bank accounts to any client money account other than a client transaction account.

(4) Where the client money reconciliation shows that amount B exceeds amount A, the administrator must transfer an amount equal to the difference from the client money accounts to the investment bank’s own bank accounts.

(5) In this regulation—

“amount A” means the total amount of client money which the investment bank, according to its own records and accounts, is required to hold in accordance with client money rules;

“amount B” means the total amount of client money which the investment bank holds in client money accounts;

“client money reconciliation” means a reconciliation of amount A with amount B; and

“client transaction account” means an account with any person which the investment bank maintains for the purpose of—

(a)

any transaction with or by that person for a client’s benefit; or

(b)

meeting a client’s obligation to provide collateral for a transaction.]

Textual Amendments

F1 Regs. 10H, 10I inserted (6.4.2017) by The Investment Bank (Amendment of Definition) and Special Administration (Amendment) Regulations 2017 (S.I. 2017/443), regs. 1, 9 (with reg. 17)