Lehman Brothers International (Europe) (in administration) (“LBIE”) - FCA Authorisation – 19 November 2021

Given the progress made in the administration, and the recent conclusion of litigation in Germany that resulted in the return of the final remaining client trust asset held by LBIE, the Administrators have reflected on the continuing need to maintain the permissions granted to LBIE by the Financial Conduct Authority (“FCA”).

Over the course of LBIE’s administration, the Administrators have successfully returned over £23bn of custodied assets and associated client money to clients under several consensually agreed arrangements.  In addition, the Administrators have engaged with all other counterparties (who did not sign up to those arrangements) to agree the resolution of their claims for trust assets and client money on a bilateral basis.

In 2018, the Administrators promoted a scheme of arrangement which included, among other things, a bar date for claims (including for the return of any trust assets).  No claims regarding trust assets were made before the bar date and none have been made since. The Administrators’ most recent published receipts and payments account included within the twenty-sixth progress report confirms that LBIE no longer holds any client money.

In these circumstances, the Administrators have concluded that LBIE’s FCA permissions are no longer required and intend to apply to the FCA to cancel those permissions. If the application is approved, it will mean that LBIE will no longer be a regulated financial institution.  LBIE’s operations will continue for the foreseeable future, and the Administrators will continue their work conducting LBIE’s business and affairs, including the recovery of various assets, concluding ongoing litigation, and resolving any outstanding claims against the estate.

Any person or interested party who believes it would not be appropriate for LBIE to cancel its FCA permissions should contact the Administrators immediately, and in any event by 6 December 2021 at generalqueries@lbia-eu.com.  The website will be updated as and when the cancellation takes effect.