Rethinking client-money protection
A UK Supreme Court ruling on client money protection at Lehman Brothers could have far-reaching consequences – not just for futures customers of Lehman and MF Global, but on the way all clients view the protections they are granted by law. By Lukas Becker
When gamblers enter a lottery, they are aware of the risks and rewards. The rules are clear, and if they lose their stake, no-one else is to blame. But what if a player didn't know they were in a lottery - should they have to lose their money regardless?
Clients and affiliates of Lehman Brothers' UK-based entity found themselves in that trap when the securities firm went bust in September 2008. Due largely to an unexplained last-minute money transfer and a failure to correctly segregate client
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