UK Floats New Client Money Rules For Collapsed Firms

Law360, New York (July 12, 2013, 10:00 PM ET) -- The U.K.’s financial services regulator proposed new rules Friday aimed at protecting client accounts after the collapse of such investment firms as Lehman Brothers International Europe and MF Global Holdings Ltd. revealed shortcomings in the current regulatory regime.

The Financial Conduct Authority said it was seeking feedback from the industry on whether to permit speedier recovery of money by clients in the event of an investment firm’s bankruptcy by allowing distribution of client money based on the firm’s records as opposed to the agreed claims of...
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