Weil’s client MF Global UK Limited (in special administration) (‘MFG UK’) is the first investment bank to have entered into special administration proceedings under the English Investment Bank Special Administration Regulations 2011 following an urgent court order on 31st October 2011. As an investment bank, MFG UK was required to comply with the then applicable rules of the Client Asset Sourcebook Rules (‘CASS Rules’) of the FSA Handbook. The CASS Rules had the effect of creating a statutory trust over client monies, making MFG UK a trustee of the client money held for its clients. Returning client money (with such claims exceeding US $2.223 billion) is one of the key tasks with which its special administrators (Richard Heis, Richard Fleming and Mike Pink) have had to deal, in pursuance of one of the three parallel objectives which apply to special administrations.
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