Judgment was given earlier this week in
Lehman Brothers International (Europe) (in administration) v CRC Credit Fund Ltd [2009] EWHC 3228 (Ch). A summary of the decision has been published
here by the
ICLR as part of its
WLR Daily service, the headnote for which reads:
The statutory trust created by Chap 7 of the Clients Assets Sourcebook (“CASS 7”) issued by the Financial Services Authority (“FSA”) took effect upon the receipt, rather than upon the segregation, of client money. Pending segregation of client money, a firm was obliged to take reasonable steps to ensure that, in relation to client money mixed in its house account with the firm’s own money, clients’ rights in relation to that client money were not put at risk, and the client money was not used for the firm’s own purposes. Client money outside the firm’s segregated accounts did not form part of the client money pool ..."
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