Jurisdiction(s):
United Kingdom

Rational FX special administration: High Court approves distribution plan, clarifying 2021 Regulations on EU customer status, safeguarded funds shortfall and costs recovery (England and Wales)

Published on: 08 September 2025

Published by a LexisNexis Restructuring & Insolvency expert

Legal News

Article summary

Kicks and another v MLS-Multinational Logistics Services Ltd (a company incorporated in Malta) [2025] EWHC 1958 (Ch)

What are the practical implications of this case?

The ruling provides significant direction for practitioners advising and administering distribution plans under the 2021 Regulations, SI 716/2021, particularly where cross-border issues arise and safeguarded monies must be allocated despite a deficit.

First, it emphasises the need for a meticulous reconciliation exercise to locate and classify relevant funds. Advisers should scrutinise every claim, especially when records are patchy or contradictory. Though labour-intensive, this step is essential to meet Objective 1 in reg 12.2 of the 2021 Regulations: returning the relevant funds as soon as reasonably practicable.
Second, Mr Justice Mellor’s decision underlines that distribution plans must adhere strictly to the statutory scheme. Plans ought to set out clearly how claims are calculated, how any deficit is dealt with, and how late claims or possible disputes will be handled. The plan should be thorough, equitable and sensible, to limit objections and the risk of litigation.
Third, the case shows the utility of early court directions on knotty legal questions, including post-Brexit arrangements affecting EU customers. Seeking declaratory relief at an early stage on such cross-border issues...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...