The High Court has handed down judgment in Re EC3 Brokers Limited (in Administration) [2026] EWHC 829 (Ch).

Chief Insolvency and Companies Court Judge Briggs approved a bespoke scheme of distribution for dealing with approximately £13 million of client money held by the company on its entry into administration. The judgment provides helpful guidance for insolvency practitioners and those in the financial services sector for dealing with insolvent entities holding client money, particularly insurance intermediaries with obligations under the FCA’s CASS 5 client money arrangements. Building upon rule variations granted by the FCA, the Court adopted a pragmatic approach to dealing with client monies to overcome significant reconciliation issues given historic data gaps, multiple systems and the operation of complex insurance concepts such as the applicability of risk transfer.

Thomas Munby KC acted for the administrators (Tony Wright and David Hudson of FRP Advisory). He was instructed by Steven Cottee, Chris Riach and Dre Efthymiou of Pinsent Masons.

The full judgment is available to read here: Re EC3 Brokers Limited (in administration) [2026] EWHC 829 (Ch)