Petition Revise Rule 135 to stop administrators from taking fees out of client assets
On the collapse of a stock-broker, this rule allows administrators to take fees out of client assets / money held in “ring-fenced” accounts. A conflict of interest arises between returning assets to clients in a timely fashion and the administrators' corporate motivation to maximise fee income.
Individuals have invested entire life-savings via ISAs and SIPPs under the assumption that their assets / money are ring-fenced and protected.
Revise Rule 135 of the Investment Bank Special Administration Rules (England and Wales) 2011 to preserve the sanctity of ring-fenced accounts and prevent a break-down of the trust in the UK financial system.
The FSCS, which is funded by a levy on financial institutions, must cover any and all costs incurred in returning ‘ring-fenced’ assets to clients.
At 10,000 signatures...
At 10,000 signatures, government will respond to this petition
At 100,000 signatures...
At 100,000 signatures, this petition will be considered for debate in Parliament