What are the major issues that have arisen in returning client assets?
The Joint Administrators have spent a considerable amount of time investigating and liaising with their legal team in relation to a variety of issues concerning client assets. The situation is complex and there are numerous issues and processes which require resolution in order to determine finally the claims of all clients to Trust Property. LBIE had many agreements with clients which were subject to individual negotiation, thus each agreement must be reviewed and it has not been possible to conduct a review of these agreements on a sample basis or to review only ‘standard terms’ used by LBIE. The Joint Administrators must ascertain which assets held by LBIE are client assets and which are house assets by reconciling these to third party data and relevant contracts. Each counterparty has a suite of contracts and master agreements which can include, amongst others, Prime Brokerage Agreements, Futures Agreements, Stock Lending Agreements, ISDA Master Agreements and Cross Margining and N
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- What are the major issues that have arisen in returning client assets?
