Client money trusts: time for a rethink? | Practical Law

Client money trusts: time for a rethink? | Practical Law

The series of judgments relating to the insolvencies of Lehman Brothers and MF Global UK Ltd has clarified the law on client money trusts and the extent of proprietary protection of client money on insolvency. These decisions have also put the UK’s approach to client money trusts under scrutiny; in particular, whether it is sufficiently adaptable for modern financial markets and how it compares with the US approach.

Client money trusts: time for a rethink?

Practical Law UK Articles 1-555-5126 (Approx. 5 pages)

Client money trusts: time for a rethink?

by Barnabas Reynolds, Shearman & Sterling (London) LLP
Published on 30 Jan 2014United Kingdom, USA
The series of judgments relating to the insolvencies of Lehman Brothers and MF Global UK Ltd has clarified the law on client money trusts and the extent of proprietary protection of client money on insolvency. These decisions have also put the UK’s approach to client money trusts under scrutiny; in particular, whether it is sufficiently adaptable for modern financial markets and how it compares with the US approach.