An initial decision by a judge in December 2009 ruled that a number of investors, whose funds were not segregated when the bank collapsed in September 2008, would not be allowed access to capital deposited within the investment banking business.
However, an appeal against the decision, led by investors such as the CRC Credit fund, has been successful in ensuring the initial ruling was overturned.
According to reports, this means investors who did not have their funds correctly segregated will now be able to access a pool of client money which is thought to be as much as $2.1 billion.
Robert Turner, CRCâs lawyer, said: âThis is a welcome decision for investor protection in the UK. It's a decision that makes good sense and means investor protection is not forfeited simply because an investor puts money with a firm that it turns out failed to comply with its obligations."
Tony Lomas, a partner at PricewaterhouseCoopers, added that the ruling is likely to have an impact on the amount and length of time it takes for claimers to receive funds.
By Jim Ottewill