Client Money Update - High Court application for a client money bar date - 21 September 2018

On 20th September 2018 the Joint Administrators made an application to the High Court seeking a bar date by which all client money claimants must make their claims with a view to paying a final client money distribution and closing the client money estate.

The Joint Administrators are currently preparing their supporting evidence in respect of the application. They are also discussing the steps to be taken when closing the client money estate with the FCA. The Joint Administrators will post an update in due course to publicise their supporting evidence and the outcome of those discussions.
The application has been issued without any named respondents. However, if you are interested in being a respondent to the application please email clientpositionresponses@lbia-eu.com. Please include “Client Money Application” in the subject line of your e-mail.

The application has currently been listed to be heard on either 29th October 2018 or 30th October 2018.

Action required

On 11 July 2018 we gave Notice of our Intention to Pay a Third Interim Client Money Distribution up to 100% of client money entitlements (in aggregate with prior distributions). A number of clients who responded to our communications about that distribution have now received 100% of their client money entitlements.

If you have not received 100% of your client money entitlement, please contact the Communications and Counterparty Management Team by emailing clientpositionresponses@lbia-eu.com.

You should also contact the Communications and Counterparty Management Team (clientpositionresponses@lbia-eu.com) if you believe that you have a client money entitlement, but we have not sent you a determination of that client money entitlement or have not made a client money payment to you, or if you disagree with our determination of your client money entitlement.

The Joint Administrators believe that there is a surplus in the client money estate. They anticipate that the final distribution, which they intend to pay to client money claimants after the bar date, will provide a total recovery for client money claimants up to approximately 106% of client money entitlements. It is intended that the remaining surplus will be transferred to the LBIE unsecured estate pursuant to the statutory rules that govern the client money estate.

If you have received payment of 100% of your client money entitlement and are satisfied with our determination of your client money entitlement, then you do not need to take any action at this stage. We will be writing, in due course, to all clients with client money entitlements of which we are aware, to provide information about our determination of each client’s client money entitlement and the final distribution to which we believe they are entitled. At that point, we will ask you to confirm your payment details in order to receive the proposed final distribution.

Queries

If you have any questions about this update please contact the Communications and Counterparty Management Team by emailing clientpositionresponses@lbia-eu.com.