Special Administration Regime for MF Global UK Inked
The Financial Services Authority (FSA) has confirmed that MF Global UK Limited (MF Global UK) has entered the Special Administration Regime (SAR) and Richard Fleming, Richard Heis and Mike Pink of KPMG LLP have been appointed as joint special administrators.
This follows a decision taken by the board of MF Global UK. The Special Administration Regime came into force in February 2011 and aims to ensure the return of client assets as soon as practicable; ensure timely engagement with market infrastructure bodies and the authorities; and
either to rescue the firm as a going concern or wind it up in the best interests of the creditors.
In an ordinary corporate administration proceeding only the third objective would apply.
The SAR was adopted in February 2011 following the collapse of Lehman Brothers and has the advantage over ordinary corporate administration in that it sets special objectives for the administrator. These include the swift return of client assets and the timely engagement with market infrastructure. This is the first time the SAR has been initiated.
Clients of MF Global UK are urged to contact KPMG for more information.
The FSA can direct the special administrator to prioritize one or more of those objectives if it deems that to be necessary on UK financial stability grounds but before it does so it must consult HM Treasury and the Bank of England.
The special administrator can direct any suppliers to continue to provide key services to the entity in the SAR, to facilitate an orderly resolution.