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08 March 2012
Issue: 7504 / Categories: Case law , Law reports , In Court
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Company—Administration—Client funds

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Re Lehman Brothers International (Europe) (in administration) [2012] UKSC 6, [2012] All ER (D) 193 (Feb)

Supreme Court, Lord Hope DP, Lord Walker, Lord Clarke, Lord Dyson, Lord Collins SCJJ, 29 Feb 2012

Client money is held on the statutory trust imposed by Chapter 7 of the Client Assets Sourcebook (CASS 7), issued by the Financial Services Authority (FSA), 7.7, from the time of receipt by a firm.

Lehman Brothers International (Europe) (LBIE) was incorporated in England as an unlimited company. It was the principal European trading company in the Lehman Brothers group and was authorised and regulated by the FSA. LBIE was not a licensed deposit-taker but it was authorised to hold clients’ money. LBIE was put into administration by an order of Henderson J made in September 2008. The administrators made several applications to the Companies Court for directions under para 63 of Sch B1 to the Insolvency Act 1986. One of those was a client money application. Nine representative claimants were joined as parties to argue the issues.

In December 2009, Briggs J made an order giving directions on a range

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