“Commercial and administrative decisions are for him [the administrator], and the court is not there to act as a sort of bomb shelter for him”
“… the purpose of the client money trust established by the CASS rules and the purpose of the client money distribution rules in CASS 7A is to protect the position of clients and to facilitate the timely return of client money in the event of failure of the firm. These purposes are not well-served by long delays while at considerable expense claims, which have been made but not pursued, are finally determined through the court proceedings.”
“The essential rationale of the illegality doctrine is that it would be contrary to the public interest to enforce a claim if to do so would be harmful to the integrity of the legal system (or, possibly, certain aspects of public morality, the boundaries of which have never been made entirely clear and which do not arise for consideration in this case). In assessing whether the public interest would be harmed in this way, it is necessary (a) to consider the underlying purpose of the prohibition which has been transgressed and whether that purpose will be enhanced by denial of the claim, (b) to consider any other relevant public policy on which the denial of the claim may have an impact and (c) to consider whether denial by the claim would be a proportionate response to the illegality, bearing in mind that punishment is a matter for the criminal courts.”
“1. In light of the delays by the JSAs – which include making no distribution to the holders of Client Money (despite there being no reasonable basis for their not having done so) – a direction that the JSAs forthwith make an interim distribution to the holders of Client Money of at least 90% of the Client Money claims. 2. In light of the above-mentioned delays of the JSAs in relation to the conduct of the special administration – which has been ongoing for 3½ years [now 4½] – and the continuing delay in the JSAs making a direction application to the court, a declaration under paragraph 74(2) of Schedule B1 that the JSAs have not performed their functions as quickly or as efficiently as is reasonably practicable (and consequential relief).”
“1. The JSAs ought to have finalised the process for marketing the Residual Client Book (“RCB”) by much sooner than March 2023. 2. Without prejudice to 1, the JSAs ought to have made an interim distribution of Client Money by, at the latest, March 2023 (alternatively August 2023). 3. Without prejudice to paragraph 1, the JSAs ought to have applied to Court to approve a Distribution Plan by, at the latest, August 2023. 4. Without prejudice to the foregoing, the JSAs ought to have made an interim distribution of Client Money before seeking to fix their own remuneration in respect of Custody Assets.”