Regulation 12C Objectives 1 and 3—client money which the administrator is unable to return to clientsF1

This regulation applies where the administrator, after setting a bar date under regulation 12A, thinks it is appropriate, in order to achieve Objective 1, to close the client money pool and treat any further claim for the return of client money as an unsecured claim.

The administrator may by a hard bar date notice set a hard bar date.

The administrator may not set a hard bar date without the approval of the court given on application by the administrator.

Where the administrator sets a hard bar date, the administrator may not meet any final money claim received after the hard bar date.

A final money claim received by the administrator after the hard bar date ranks as an unsecured claim.

No interest is payable on the debt for which a person makes such a claim, except interest on such part of the debt which remains after deduction of the total amount which the client would have received by way of a distribution from the client money pool if the final money claim had been received by the administrator on or before the hard bar date.

In this regulation—

• “final money claim” means a claim for the return of client money which is submitted in response to the setting of a hard bar date;

• “eligible claimant” means a person—

  1. (a)

     to whom the administrator has already made a distribution of client money without receiving a claim for the return of client money to that person;

  2. (b)

     who has submitted a claim for the return of client money other than a final money claim; or

  3. (c)

     who submits a final money claim on or before the hard bar date;

• “hard bar date” means a final date (subject to paragraph (5)) for the submission of claims for the return of client money; and

• “hard bar date notice” means a notice which specifies a hard bar date and includes a statement that after the end of that day the administrator—

  1. (a)

     may, in accordance with client money rules, transfer to the investment bank’s own bank accounts any balance of the client money pool which the investment bank holds after the return of client money to eligible claimants; and

  2. (b)

     may not meet any further final money claims.