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10. (1) The administrator has three special administration objectives (“the special administration objectives”)—
(a)Objective 1 is to ensure the return of client assets as soon as is reasonably practicable;
(b)Objective 2 is to ensure timely engagement with market infrastructure bodies and the Authorities pursuant to regulation 13; and
(c)Objective 3 is to either—
(i)rescue the investment bank as a going concern, or
(ii)wind it up in the best interests of the creditors.
(2) In relation to sub-paragraph (1)(a), the administrator is entitled to deal with and return client assets in whatever order the administrator thinks best achieves Objective 1.
(3) The order in which the special administration objectives are listed in this regulation is not significant: subject to regulation 16, the administrator must—
(a)commence work on each objective immediately after appointment, prioritising the order of work on each objective as the administrator thinks fit, in order to achieve the best result overall for clients and creditors; and
(b)set out, in the statement of proposals made under paragraph 49 of Schedule B1 (as applied by regulation 15), the order in which the administrator intends to pursue the objectives once the statement has been approved.
(4) The administrator must work to achieve each objective, in accordance with the priority afforded to the objective as provided in paragraph (3), as quickly and efficiently as is reasonably practicable.
(5) For the purposes of Objective 1, “return of client assets” or where the client assets are “returned” to the client means that the investment bank relinquishes full control over the assets for the benefit of the client to the extent of—
(a)the client’s beneficial entitlement to those assets (where the assets in question have been held on trust by the investment bank); or
(b)the client’s right to those assets as bailor or otherwise (where the investment bank has been holding those assets as bailee (in Scotland, as custodier of those assets) or by some other means to the order of the client);
having taken into account any entitlement the investment bank might have, or a third party might have, in respect of those assets, of which the administrator is aware at the time the assets are returned to the client.
(6) In relation to paragraph (5)—
(a)where client assets are returned to a person other than the client, for “client” substitute “claimant”; and
(b)where the claimant is the investment bank, for “relinquishes control over the assets for the benefit of the client” substitute “takes full title to the assets for its benefit”.
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