The law and regulation of custody securities: cutting the Gordian knot

In the EU, proposals for the Securities Law Legislation (SLL) has stalled, at least for the present. Internationally, the UNIDROIT Geneva Convention 20091 (Geneva Convention) is not yet in force. In the UK, some five and a half years after the failure of Lehman Brothers (International) Europe (LBIE), the FCA’s client asset review is ongoing and the Bloxham Review2 has called for a fundamental reappraisal of the legal basis of client entitlements. Clearly, the law and regulation of custody securities is not an easy nut to crack.