Jurisdiction(s):
United Kingdom

Re OneStopMoneyManager Ltd (England and Wales): no statutory trust over safeguarded monies under EMRs 2011/PSRs 2017; directions for liquidators dealing with unclaimed merchant funds

Published on: 08 August 2024

Published by a LexisNexis Restructuring & Insolvency expert

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Article summary

What are the practical implications of this case?

This first‑instance ruling confirms that the safeguarding obligations under the EMRs 2011, SI 2011/99 do not establish a statutory trust. It mirrors the Court of Appeal’s determination that the PSRs 2017, SI 2017/752 similarly do not give rise to a statutory trust. The outcome is practically significant for insolvency practitioners: they can proceed on the footing that merchant monies received by firms regulated under either regime fall within the general asset pool, albeit subject to the relevant safeguarding requirements in the regulations. In addition, the judgment provides pragmatic procedural pointers for scenarios where practitioners are unable to remit client monies—for instance, where the merchant cannot be identified or fails to supply banking particulars—thereby suggesting steps that may properly be taken to address such impasses while maintaining compliance with the safeguarding framework...

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