The Investment Bank Special Administration Regulations 2011 came into force on 8 February 2011 under powers ontained in the Banking Act 2009. At the time the Regulations were made, the Government indicated that it would introduce insolvency rules to accompany the Regulations - the Investment Bank Special Administration (England and Wales) Rules 2011 came into force on 30 June 2011.
On 31 October 2011, MF Global UK Limited became the first company to enter Special Administration following the appointment of KPMG as Special Administrators pursuant to an application to the High Court by MFG's directors. The Regulations were introduced, in part, due to certain difficulties faced by the administrators of Lehman Brothers International when applying the "ordinary administration" regime under the Insolvency Act 1986 to an investment bank.
This briefing from Macfarlanes' banking and finance team outlines the main features of the process by which an investment bank enters Special Administration; and principal features of a Special Administration.
Click 'View Briefing' to read on.