The bar date over client asset claims in the UK investment bank special administration regime
Year: 2024
Type: article
Abstract: This article empirically examines the use of the bar date over client asset claims in the UK investment bank special administrations. Empirical evidence suggests that the bar date was designed with considerable flaws and that its implementation only made things from bad to worse, partly because of the conflicts of interest of special administrators. The data prove that the legislative assumption over the inaccuracy of failed investment banks’ client asset records, which necessitates a separate client asset claim process and the resultant use of the bar date, is problematic. This article advocates the assertation made by Mr Peter Bloxham, a leading expert commissioned by HM Treasury to review the UK investment bank special administration regime in 2013, that a client asset transfer to a third party, rather than a return to clients themselves, should be pursued. This article empirically investigates the use of the bar date over client asset claims under the UK investment bank special administration regime.1 The bar date, a deadline, is routinely used in bankruptcy procedures to require creditors to file claims in a timely manner, because ‘dates matter in bankruptcy’,2 and a claim lodged after is likely to be barred, as is literally suggested.3 The use of the bar date is key for the efficient management of the bankruptcy estate on the grounds that it can facilitate finality, otherwise, insolvency procedures may never be closed.4 For the UK legal community, the bar date is somewhat an alien term, since it is traditionally used by insolvency practitioners in the USA,5 and probably in the early 2000s, this phrase began to appear in some UK corporate insolvency cases.6 In the UK, by law, the equivalent of the bar date is formally called ‘the last date for proving’,7 which means that for creditors all claims must be submitted no later than a fixed point of time, but, by convention, British insolvency professionals tend to use the terms like deadline or cut-off to a only the and the UK, in the the bar date to it to to client claims in investment bank This article on the use of the bar date over client asset claims bar date over client claims be in a under the UK investment bank special administration a insolvency for investment since the bar date is designed as of the key to the of this special insolvency regime in client asset The of the bar date on and is and be the bar date on client asset claims formally the UK investment bank special administration regime since The and is the use of the bar date is in a return of client that the British it as a in the legislative the investment bank special administration The on the is the in an is to the of this legal the to the is the is the of the bar date is as as by the this article to as to the UK investment bank special administration in the that a investment bank insolvency and in return the UK in the of this article in the UK investment bank special administration regime in and its of the bar date in the the data the and some The and some the of this the in the UK, the bankruptcy of and investment was to the insolvency law, as was in no special bankruptcy procedures for this article the bankruptcy of a third of the UK was a for the of a special insolvency for since the insolvency is to the special from like the of the and the of in a bank insolvency and of in an investment bank In to the by the in and by the of the British in the UK the which is with the bank a special insolvency to with of the of the British insolvency in the of investment the of the investment the UK used the to the HM the and to a for the bankruptcy of investment This to the of the which the UK investment bank special administration regime and on bank from corporate since an investment bank is under the of the its the of the For in the administration of an investment bank as the some in client in to the of only investment bank is a like and on of and for its article the terms client and under the insolvency law, creditors is the and and this to a clients be In the investment bank the of clients only to the return of after and a this that clients in the return of after the creditors the key of an investment bank insolvency is to return client as to to is that the investment bank special administration regime is on the administration under the UK insolvency law, the the to as the an investment bank is a special administration the special is to is to return client as as is with and and is from the corporate administration which the special to the failed investment bank as a or to it in the interest of the creditors as an and since the administration under the is to of a return of client is the key of a special administration regime for investment and this is the of this special insolvency is on since the special should with the the on as as with the on investment in to which may this regime that the special should a return of client it on the return of client should be to be and be as a can be that be to be in The is that no by over which may the legislative of the to client asset is can to a no is In of the of the the that ‘the in which the special administration in this is it of a client asset return is a This is is no the client asset return as a the to to the special that it is to the special to as ‘the In as for the the of the UK the to or special administration which suggests that a to be special probably to client the that the a the must be for the of the of the UK and a of this to a that it may be for the to the special to as the some the key legislative of the client asset the is a to the of investment bank to from the special should to the investment bank special administration regime a of client a client asset The of client be a transfer to a investment this is by of a For UK it is somewhat of a to the of this In made to a The legislative can be in the which the transfer In the Treasury to the investment bank special administration of this that ‘the Treasury to the of and the return of client the was of the of client under this which was a special insolvency regime was in the after this the of the a and a on to a client asset to client a to to and or equivalent to which an to for a can be from with the special insolvency for investment the Treasury was to to the return of client can be in of to clients and the a the was it from the In the rather the transfer to since it was in the is likely to be an the the is the return of client as as is for a return of client can be by of a the was The Treasury was likely to the transfer or this that the transfer by the Treasury in the as it was for the Treasury to this for the The Treasury the and the return and In the the was used on the return of client it was on in the that the investment bank the and to return to clients a transfer to a third it can be that the Treasury the use of a transfer as of client it is for to this for practitioners in the of be This is in the review by Mr Peter Bloxham, an expert by the Treasury to review the in legislative Mr that the investment bank special administration regime should a to facilitate a and Mr Bloxham, and called the Treasury to administration from of client to a to or the Treasury this on the grounds that the as of client return can the as a of which the of of investment bank special administration to be the of the Treasury on to facilitate a transfer the the of and to as the key in the made to a a is which the legislative In the of the the transfer of used for a transfer of client as by this is used in the of on to a client asset transfer This is the and is by some which by the of the that a client asset transfer the from a transfer can be by this means that to a transfer be This can be for a which to a transfer can be and the client data can be the special to to the all the some be this client or this is the the special only to the to the the data to a to a the that the of and to the investment be by the which is to a clients and this the special be to a transfer for that the estate of the investment bank be since on of client or the of the In a after the a of was as to the for a the is can be by from the in a return of client a bar date is by the and the in to the process of clients the bar date is the of this which be the the early in the UK, a deadline to require creditors to claims a fixed point of it was formally the as a to facilitate the return of client and the in its was with its the of the bar date in the UK over the phrase in some of and its use can be in the of in which the of was and the bar date was to creditors to the its use can be in of on claims in of on and of the bar date in can be and the bar date like in the investment bank special administration must be the of the bar date over This is partly because the in over a bar date can be used is as a of which it to a from the for of of the is on a deadline can to by the in terms of and a be in the of to be a and the of the bar to the in the a in the of as claim as For in for creditors on the the by a of the and its and for creditors appear on the and records, the to by in leading In the of the bar date, all creditors should be to all to be a of the bar the bar date is designed with a considerable of In for creditors on the claims the of the bar date, the claims to the the bar date of creditors and under the This is from the in under which a to file a claim in the deadline claims be in in under the terms of the a claim be and to an the and the it can be called it can be of the use of the bar date is to and finality, the In a claim be and can be and in this British for later in in of the bar date in the of is a claim be is a in the the use of the bar date over creditors in on the grounds that a claim should be is no or a of of the the bar date, must be on is a for a The bar date was used over a was made in 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The of the bar date in UK investment bank special The of the bar date in UK investment bank special the in client asset the use of the bar date is to be a in investment special it is the in the bar date over client asset claims was only in of all This means in over of the investment bank special it was This may the the of this legal in of all special the investment bank client of client the client asset bar date only to a over of The is it was in special its all special client the bar date was it is that the client asset transfer in of client asset transfer means that client to be to an investment a client asset claim which on the client asset to asset a it that the bar date is to a client asset This to be an the special administration of can be the is because of the of client asset claims in this In only clients client asset claims The of client asset claims in this is a because it is to clients in investment bank special in the special administration of clients client claims some clients on only of the is to the of client asset the is the data that the bar date over client to be of a client asset transfer client asset transfer is the of client because it is efficient in client asset the of client asset this from the of a special administration it for clients to asset and the in this should be is a to an date the client asset return since in client or after over and over For and this the date the of client is or as the client asset return on this special to a client asset transfer and in the of a client asset bar date, as in on it only for clients to or This asset return in client asset bar The and client asset it the bar date over client asset claims was used in In client asset the bar date over client asset claims was the of client asset since the of the of the special administration and the of the client asset transfer means that is no for the of a bar a bar date is client asset return by law, only be after the bar for a client asset the bar date should be rather than be the use of the bar date is in client asset this the of the the of the special administration and the of the of client as The bar date was used in in which client to be should be that the special administration of is since the of the client to a the bar date was the of the bar date is to the of client asset in this for the the of key in asset return in the of bar The and client asset For client asset the of in the of and that the clients for after the of the special administration to the of client The of this it is after only some clients the return of The is in the special administration of this efficient client asset return than the of in the client asset to a bar special the bar date to client asset on it to the return of client the of and the that was the bar date a rather than a in a return of client a the use of a bar date is for the in client a bar date is the to all and time, and the that a bar date, the special should a for clients to and asset for the this is to the of special administrators. on a is used by special in a client asset bar date, this the special administration date and the client asset bar date in of in the of was used in the special administration of which means that clients over to and client asset This The of the of in the of that the to be with this on in the the clients to asset some clients may that to client asset claim some may that this in a client asset bar The and client asset bar For the of the of the bar date is the of the the the bar date is client can only be after the bar with the is that the bar date is clients must for to the return of is to that the use of the bar date somewhat to the in client in the it can be that is a bar date is a for clients a return of client The bar date to be a was the bar date used in The is that the of a bar date is to client asset since the that the it in to the return of client the may a bar The on the the in a because this be by the In the of the bar date is on the assumption that client the client asset as a of which client asset claim
Source: Capital Markets Law Journal
DOI: 10.1093/cmlj/kmae018
Author: Zinian Zhang
Institution: University of Glasgow
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $4,760
OpenAlex ID: W4402664676