Foundation for Unclaimed Assets Bill

House of Commons

Session 2002 - 03
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Other Bills before Parliament

Foundation for Unclaimed Assets Bill

Foundation for Unclaimed Assets Bill

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A

Bill

To

Establish the Foundation for Unclaimed Assets and make provision as to its

functions.

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and

consent of the Lords Spiritual and Temporal, and Commons, in this present

Parliament assembled, and by the authority of the same, as follows:—

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Foundation for Unclaimed Assets

(1)

There shall be a Foundation for Unclaimed Assets (“the Foundation”).

(2)

The Foundation shall have the functions conferred on it by this Act.

(3)

The Foundation’s general functions are—

(a)

to encourage banks, building societies and other financial institutions

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to give it their unclaimed assets, and

(b)

to distribute, subject to section 2, the unclaimed assets which it has

received in such manner as the Secretary of State shall prescribe.

(4)

The Secretary of State shall prescribe the manner in which the Foundation shall

conduct its affairs.

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(5)

The Secretary of State may by regulation add to, or revise, the general functions

of the Foundation.

(6)

The Foundation shall consist of a chairman, two deputy chairmen and not less

than two or more than eight ordinary members appointed by the Secretary of

State.

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(7)

The Foundation may appoint such staff and on such conditions of employment

as it thinks fit.

(8)

The Secretary of State may pay to the Foundation out of money provided by Parliament

such sums as he thinks appropriate.

(9)

The Foundation must as soon as possible after the end of each financial year

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prepare and send to the Secretary of State a report on the carrying out of its

functions during that year.

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Foundation for Unclaimed Assets Bill

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(10)

The Secretary of State must lay before each House of Parliament a copy of

every report sent to him under subsection (9).

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Allocation of assets to members of certain pension schemes

(1)

Qualifying members of qualifying pension schemes shall have the first charge

on any assets given to the Foundation.

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(2)

The Secretary of State shall prescribe a scheme for distributing the assets of the

Foundation to qualifying members.

(3)

The scheme made under subsection (1) shall follow as closely as possible the

pension compensation provisions of the Pensions Act 2004 (c.00).

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Interpretation

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(1)

For the purposes of this Act—



“bank” has the same meaning as banking company in the Financial

Services and Markets Act 2000 (Consequential Amendments and

Repeals) Order 2001 (SI 2001/3649);



“building society” has the same meaning as in the Building Societies Act

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1986 (c. 53);



“financial institution” has such meaning as the Secretary of State shall

prescribe;



“prescribed” means prescribed by regulations made by the Secretary of

State and “prescribe” shall be construed accordingly;

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“qualifying member”, in relation to a qualifying pension scheme, means a

person—

(a)

who, at such time as may be prescribed, is or was a member of

the scheme in respect of whom the scheme’s pension liabilities

are unlikely to be satisfied in full because the scheme has

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insufficient assets, or

(b)

who, at such time as may be prescribed, had ceased to be a

member of the scheme and in respect of whom the scheme’s

pension liabilities were not satisfied in full, before he ceased to

be such a member, because the scheme had insufficient assets,

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and in respect of whom prescribed conditions are satisfied at such time

as may be prescribed;



“qualifying pension scheme” means an occupational pension scheme

(including such a scheme which has been fully wound up)—

(a)

which, at such time as may be prescribed, is not—

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(i)

a money purchase scheme, or

(ii)

a scheme of a prescribed description,

(b)

the winding up of which began during such period as may be

prescribed, and

(c)

the employer in relation to which satisfies such conditions as

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may be prescribed at such time as may be prescribed;



“scheme’s pension liabilities”, in respect of a member of a qualifying

pension scheme, means the liabilities of the scheme to, or in respect of,

the member in respect of pensions or other benefits (including increases

in pensions),

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Foundation for Unclaimed Assets Bill

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and a qualifying pension scheme has, or had, insufficient assets if the assets of

the scheme are, or were, insufficient to satisfy in full the liabilities of the scheme

calculated in the prescribed manner.

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Regulations

(1)

The power to make regulations under this Act is exercisable by statutory

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instrument.

(2)

Regulations made under this Act shall not come into effect unless a draft of the

regulations has been laid before and approved by each House of Parliament.

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Expenses

There shall be paid out of money provided by Parliament—

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(a)

any expenses of the Secretary of State under this Act; and

(b)

any increase attributable to this Act of the sums payable under any other Act.

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Short title

(1)

This Act may be cited as the Foundation for Unclaimed Assets Act 2004.

(2)

This Act extends to the whole of the United Kingdom.

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