UK: reforming the special administration regime for investment banks

HM Treasury is seeking views on proposed reforms to the special administration regime for investment banks, following a review of the regime undertaken by Peter Bloxham: see here (pdf). A copy of the secondary legislation - the Investment Bank (Amendment of Definition) and Special Administration (Amendment) Regulations 2016 - through which the proposed changes will be made has also been published: see here (pdf).

UK: FSA business plan for 2012/13 published

The Financial Services Authority has published its business plan for 2012/13, the last that it will publish before the new regulatory framework is introduced in (it is anticipated) the first half of 2013: see here (pdf). The plan provides a useful overview of how the twin peaks approach to supervision will operate within the FSA prior to the creation of the new regulatory authorities. This overview (on page 14) makes clear that both supervisory groups will be concerned with firms' board and governance processes.

UK: first use of the Special Administration Regime

MF Global UK Limited has become the first investment bank to enter the Special Administration Regime (SAR) introduced by the Investment Bank Special Administration Regulations 2011, under Section 233 of the Banking Act (2009). The SAR was introduced in response to the weaknesses revealed in the UK's insolvency regime following the collapse of Lehman Bros. One of the duties of the administrator under the SAR is to ensure the return of client assets as soon as is reasonably practicable. See here for further background information and here for a statement from the Financial Services Authority.