Worldspreads Ltd, Re Investent Bank Special Administration Regulations 2011 [2015] EWHC 1719 (Ch) (19 June 2015)

Worldspreads Ltd, Re Investent Bank Special Administration Regulations 2011 [2015] EWHC 1719 (Ch) (19 June 2015)

The court has jurisdiction, both under paragraph 63 of Schedule B1 to the Insolvency Act 1986 (as applied by IBSAR) and under its inherent jurisdiction over trusts, to direct the final distribution of client money in a special administration, including setting a bar date and disregarding non-responsive or de minimis claims, where the administrators have taken all reasonable steps to notify claimants and the process balances the interests of established and potential claimants.

Citation
[2015] EWHC 1719 (Ch)
Parties
Company: Worldspreads Limited (in special administration); Joint Special Administrators: Jane Moriarty and Samantha Bewick
Jurisdiction
England and Wales
Judgment Date
19 June 2015
Procedural Posture
Special Administration Directions Application / Final Distribution Directions
Outcome
Application granted; order made as sought.
Legal Topics
Client Money Distribution, Special Administration, Statutory Trusts, Investment Bank Special Administration Regulations, CASS Rules
Insolvency Financial Regulation Trusts Client Money Distribution Special Administration Statutory Trusts Investment Bank Special Administration Regulations CASS Rules

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Parties

Worldspreads Limited (in special administration)

Company

Jane Moriarty and Samantha Bewick

Joint Special Administrators

Procedural Posture

Special Administration Directions Application / Final Distribution Directions

Legal Issues

  1. 1 Whether the court has jurisdiction to direct the final distribution of client money in a special administration where the CASS rules do not provide a mechanism for non-responsive clients
  2. 2 Whether the administrators can disregard claims of non-responsive or de minimis clients in the final distribution

Ratio Decidendi

The court has jurisdiction, both under paragraph 63 of Schedule B1 to the Insolvency Act 1986 (as applied by IBSAR) and under its inherent jurisdiction over trusts, to direct the final distribution of client money in a special administration, including setting a bar date and disregarding non-responsive or de minimis claims, where the administrators have taken all reasonable steps to notify claimants and the process balances the interests of established and potential claimants.

Court Disposition

Application granted; order made as sought.

Orders

  • Administrators authorised to set a bar date for client money claims.
  • Administrators authorised to disregard non-responsive and de minimis claims in final distribution.