Special administrations

UHY Hacker Young’s turnaround and recovery team provide Special Administration services to financial institutions. The Investment Bank Special Administration Regulations (SAR) 2011 was introduced to deal with distressed FCA regulated companies with the objective of ensuring minimal disruption to financial markets and, as a result, managing consumer confidence. The regulations help clients and creditors caught up in complex insolvencies receive their funds quicker.

SAR is a process that has three statutory purposes which need to be met (but not in an hierarchical order). It requires the following of the special administrator:

  • to return client assets and monies;
  • the timely engagement with authorities and market infrastructure; and
  • to rescue the business as a going concern, or to wind it up in the best interests of the creditors.

Once these objectives are met, the SAR process allows for the more standard procedure of realising the company’s assets and carrying out investigations into the company’s dealings to establish why it has collapsed.

This is a very niche field in the financial services sector, with only a handful of these Special Administration appointments being made to date, two of which have been handled by UHY Hacker Young. We have been working hard to develop significant expertise and knowledge in this area.

CITY EQUITIES LIMITED

This is the fifth time the Special Administration Regime has been used since its introduction in 2011.

Andrew Andronikou and Peter Kubik were appointed as Special Administrators to this London-based stock broker, City Equities Limited, under the Special Administration Regime.

A Special Administration Order in respect of City Equities Limited was granted in an out of hours hearing on 11 October 2013 after the directors made an urgent application to Court the same day. The application was made following previously unsuccessful attempts to recapitalise City Equities under the FCA’s capital adequacy rules.

If you are a client or creditor wishing to submit a claim, please use the following links to the relevant forms:

 

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