The aftermath of the collapse of Lehman Brothers International Europe is the focus of a post on Westlaw Business Currents. Christopher Elias addresses some of the issues in his post titled, “UK Insolvency Law: Trust Issues Complicate Lehman Administration.”
Elias examines how trusts present a special issue for financial company insolvency in the United Kingdom. He writes:
The insolvency of the Lehman Brothers Group marks a fundamental difference between the UK and the U.S. in the insolvency of financial services companies. In the U.S the Securities Exchange Act of 1934 ensures that a beneficiary’s property in a financial services company is identifiable at all times, whereas the same cannot be said to be true in the UK. This lack of segregation poses an uphill struggle for UK administrators where financial services companies are involved, as it makes it difficult to identify a beneficiary’s entitlement to trust property. This is exacerbated by the fact that administrators are unable to use Scheme of Arrangements where trusts are involved, as they inevitably will be in the case of a Financial Services Company.
You can read the full post on Westlaw Business Currents.
Posted by Kevin Hunt in:
In Business | Industry trends |
