Client Money Application: Appeal Date Change, Consent to Disclose Details and Confirmation of Entitlements - 21/05/10

This update concerns the application issued by the Joint Administrators on 1 May 2009 seeking directions from the Court concerning LBIE's obligations in relation to the handling of client money received prior to the time of administration (the "Client Money Application"). Further background to the Client Money Application can be found in earlier updates posted on the PwC Client Money website here.

Appeal Date Change

As noted in the Client Money Update of 9 March 2010 the Appeal hearing had been expected to start on 16 or 17 June 2010.  The Civil Appeals Office has now confirmed that 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.

Consent to Disclose Details

The Joint Administrators are seeking to recover from third parties (including its affiliates) a large part of the client money segregated by LBIE prior to the time of administration. This is an important task as the Joint Administrators are only able to distribute money which they recover.  The Joint Administrators are seeking consent from all client money claimants to enable the disclosure of certain details of client money claimants to third parties to help maximise the money available to be distributed and to facilitate the Joint Administrators in distributing client money in due course.

The Joint Administrators have requested that client money claimants confirm that they are content for their details to be disclosed via the client money section of the Client Information Portal (“the Portal”).  Please note that if consent is not provided, it may adversely affect the Joint Administrators’ ability to maximise client money recoveries and the amount of client money that is distributed.  Client money claimants who have not yet provided their consent are encouraged to log on to the Portal.  Click here to log on to the Portal.

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.  No interim distribution from the client money pool can take place until appeal proceedings in respect of the client money application have been concluded.  However, timely confirmation of entitlements by clients will enable the Administrators to move expeditiously towards an interim distribution once the appeal process has been concluded.  Confirmed entitlements are necessary as part of the distribution process to calculate amounts payable to clients.

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 as soon as possible.  Click here to log on to the Portal.

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.