FSA Considers Customer Fund Changes In Wake Of MF Global

Law360, New York (September 7, 2012, 1:19 PM EDT) -- The U.K. Financial Services Authority proposed new rules Thursday to make it easier to return customer funds after brokerage firms go bust, hoping to prevent a repeat of the confusion and delay that has plagued efforts to refund customers of MF Global Inc. and Lehman Brothers International Ltd.

The FSA wants to allow firms to preemptively collect customer funds in "subpools" to allow for quicker distributions following a collapse and to contain client money shortfalls to a particular subpool. The move would curtail the legal wrangling...
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