November 1, 2011 The Financial Markets Law Committee has published a report entitled 'Analysis of legal uncertainty in the Financial Services Authority's Client Assets Sourcebook and arising from judicial decisions relating to the administration of Lehman Brothers International (Europe)'. This FMLC has prepared the report for the FSA in its consideration of the Client Assets Sourcebook (" CASS"). In particular, the report seeks to deal with: (i) the uncertainties highlighted in the High Court's decision in Lehman Brothers International (Europe) v CRC Credit Fund Limited and the decision of the

London Stock Exchange October 31, 2011 On 31 October 2011, MF Global UK Limited went into special administration by court order, under regulation 7 of the Investment Bank Special Administration Regulations 2011 (SI 2011/245) (the Regulations). It is the first investment bank to enter the special administration scheme. Cross References Financial Services Compensation Scheme Financial Services Authority

Financial Services Authority November 3, 2011 On 3 November 2011, the FSA published a policy statement entitled Strengthening Capital Standards 3 - feedback and final rules for CRD3 (PS11/12). CRD III (2010/76/EU) amends the Capital Requirements Directive (2006/48/EC and 2006/49/EC). PS11/12 articulates the amendments to the FSA Handbook implementing provisions in CRD III that must be implemented by 31 December 2011, which relate to: trading book requirements; requirements relating to securitisation in the non-trading book; Pillar 3 disclosure requirements; and prudent valuations and certain

Bank for International Settlements November 2, 2011 On 2 November 2011, the Basel Committee published a second consultative paper on the Capitalisation of bank exposures to central counterparties. The paper details the capitalisation of bank exposures to a central counterparty (CCP) referencing both capital requirements for default fund exposures and trade-related exposures to CCPs. The Basel Committee intends to finalise the rules by December 2011 and expects that they will be implemented by January 2013.

Financial Services Authority November 1, 2011 Following feedback from registered issuers on the interaction of their compliance function and the Regulated Covered Bond programmes, the FSA has provided further guidance on its expectations in this regard. In particular, the FSA expects that second line oversight of regulated issuers should include practices such as ongoing monitoring, clearly defined escalation processes, and regular formalised interaction. The FSA has also noted examples of good practice it has observed, for instance, where compliance is represented as a voting member on