The Joint Special Administrators give notice, in accordance with Regulation 11 of The Investment Bank Special Administration Regulations 2011 (the “Regulations”) and under Rule 138 of The Investment Bank Special Administration (England and Wales) Rules 2011 (the “Rules”), THAT the Joint Special Administrators think it necessary in order to expedite the return of client assets to set a bar date of 17.00 hours in London on 29 February 2012 (the “Bar Date”) for the submission of:
(a) claims to the beneficial ownership, or other form of ownership, of the client assets; or
(b) claims of persons in relation to a security interest asserted over, or other entitlement to, those assets.
The full notice of the Bar Date is below
What is a bar date?
A bar date represents a deadline by which time claims in respect of client assets must be submitted. Failure to submit a claim by the bar date may prejudice a client’s ability to recover client assets.
Why has a bar date been set now?
The purpose of the bar date is to allow the Joint Special Administrators to speed up the return of client assets. In setting a bar date, the Joint Special Administrators must allow a reasonable time after notice of the special administration has been published for persons to be able to calculate and submit their claims.
What is the effect of a bar date?
After a bar date has been set, if a claim to client assets has been agreed by them, the Joint Special Administrators may return client assets in accordance with a Distribution Plan drawn up by the Joint Special Administrators.
The agreement of the claim which has been submitted by the bar date will give a client good title to the asset for the purpose of its return. If you fail to submit your claim by the bar date, another claimant may acquire good title to the client assets claimed by you and there shall be no disruption to those client assets that have already been returned. In these circumstances, if MF Global UK has insufficient assets of the type claimed by you, your only remedy will be to submit a claim for the value of the client assets not returned to you.
What is a Distribution Plan?
After a bar date has been set, the Joint Special Administrators are required to prepare a Distribution Plan setting out:
- the timetable for the return of each client asset;
- to whom each asset is to be returned; and
- how the expenses of the Joint Special Administrators incurred in the agreement and return of the client asset will be charged to each client.
The Joint Special Administrators are not entitled to return client assets sooner than three months after the bar date.
The Distribution Plan must be approved by the Creditors Committee and by the court and the Joint Special Administrators will not return any client asset without such approval.
Why does the process take so long?
The Joint Special Administrators will not agree claims in respect of client assets until they are satisfied that the claimant has been verified as a client of MF Global UK, that the claimant has a valid entitlement to the asset and that the asset in question is a segregated client asset in accordance FSA Client Asset rules (CASS – Client Asset Sourcebook). If they are not satisfied, the Joint Special Administrators may require clients to provide additional evidence of their claim.
The three month period running from the passing of the Bar Date which must elapse before client assets may be returned is a statutory requirement.
What do I need to do if I have a claim in respect of client assets?
If you have not already submitted a client claim form:
You must submit your claim before the bar date (17.00 hours in London on 29 February 2012) using the client claim form which is available in the Claims Forms section above. Instructions on how to complete the claim form are contained in the form. The claim must be evidenced by supporting documentation, provided together with the client claim form.
If you have already submitted a client claim form:
Unless you wish to amend your claim, a client claim form in respect of client assets does not need to be resubmitted.
What if I also have a claim in respect of client money?
The bar date does not apply to claims in respect of client money. However, we encourage all claims from clients to be submitted as soon as possible which will assist in the earlier agreement and distribution of client money.