Client Money Update - Confirmation of Entitlements and Client Money Proposal - 18/06/10

As outlined in the Client Money Update of 21 May 2010 the Appeal hearing will start on 21 June 2010 and is expected to last for 5 days.  Further updates will be provided in due course as the appeals progress.

Confirmation of Pre Administration Client Money Entitlements:

The Client Money Update of 30 April 2010 requested that all clients with potential claims to Pre-Administration Client Money confirm their entitlements via the Portal.  The Administrators have been engaged in a comprehensive communications programme over the past month to seek confirmation of client money entitlements.  Many hundreds of clients have now confirmed their entitlements via the Portal.  One benefit of this process has been the identification of some adjustments required to client money entitlements.  The Administrators intend to issue updated statements on the Portal by late June 2010 to reflect these changes.  Another benefit of confirmation of entitlements is that the Administrators will be able to move expeditiously towards an interim distribution, for confirmed entitlements, once the appeal process has been concluded.  The Administrators would like to highlight that all client money claimants will have to confirm their entitlements, irrespective of the outcome of the Appeal, before any payments will be made to them.

Client money claimants with potential claims to Pre-Administration Client Money who have not yet confirmed their entitlements are encouraged to log on to the Portal, review their “Client Money Statements-Post Court Directions” and submit their confirmation, or indicate the reasons for their disagreement, as soon as possible.  Click here to log on to the Portal.

For clients with non-LBIE controlled “Depot Breaks” (where client money was locked up in lieu of asset shortfalls in the depot) the situation is more complex.  The most significant is where LBI was the depot which held the asset, where the Administrators are dependent on the LBI trustee providing data to determine client money entitlements.  The Administrators would expect to ‘reserve’ these client money entitlements until there is clarity regarding the status of the initial underlying asset shortfall.

Client Money Proposal:

As outlined in the Client Money Update of 10 June 2010 the registration deadline for claimants who wished to be considered for the Client Money Proposal has now passed.  The Joint Administrators have emailed Eligible Client Money Claimants with appropriate documentation to move the application process forward.  If you have received a Client Form (by email) from LBIE, we encourage you to fill in the necessary information and return by email to clientpositionresponses@lbia-eu.com as soon as possible so that we are able to process your Client Form and send out your Form of Agreement in time for you to meet the 30 June 2010 deadline for submission of your executed Form of Agreement.

Should you have any questions regarding the content of this update, please do not hesitate to contact the Counterparty Communications and Management team at clientpositionresponses@lbia-eu.com.

As always, the Joint Administrators will continue to communicate with you through this website on all matters relating to the administration of LBIE.