- Fifth time the Special Administration Regime has been used since its introduction in 2011
Andrew Andronikou and Peter Kubik, have been appointed as special administrators to London-based stock brokers City Equities Limited under the Special Administration Regime.
A special administration order in respect of City Equities Limited was granted on Friday evening during an out of hours hearing 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.
Peter Kubik, turnaround and recovery partner, comments: “We have worked closely with the FCA to ensure that the company’s special administration has as minimal impact as possible on the clients of City Equities Limited and we continue to work alongside the FCA to ensure an orderly distribution of client assets as quickly as possible. This is the primary objective of the special administration regime and once all client assets have been returned, we will then focus on the more standard administration procedure of realising the company’s assets and carrying out a thorough investigation into the company’s dealings and why it came to this point.
The company has worked within difficult trading conditions of late and so the special administration will now assist to complete an orderly wind down of the business which we intend to undertake as quickly as possible.”
This is just the fifth time the Special Administration Regime (SAR) has been used since being introduced in 2011 after the collapse of Lehman Brothers.
The SAR was introduced to deal with insolvent investment banks and financial institutions with the objective of ensuring minimal disruption to financial markets and, as a result, managing consumer confidence.