Dormant Bank and Building Society Accounts Bill [HL]

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Dormant Bank and Building Society Accounts Bill [HL]

Dormant Bank and Building Society Accounts Bill [HL]
Part 1 — Transfer of balances in dormant accounts
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(4)
Before preparing the report the Treasury shall consult those persons who it
considers have relevant knowledge of the operation of the dormant account
arrangements.
(5)
The report shall be published in such manner as the Treasury shall determine
and shall be laid before each House of Parliament.
5
13
Customer’s rights preserved on insolvency etc of bank or building society
(1)
Where after a person has acquired a right to payment under section 1(2)(b) or
2(2)(b)—
(a)
the bank or building society in question is dissolved or wound up, or
(b)
for any other reason the liability that the bank or building society
10
would have to the person (but for the transfer referred to in section 1(1)
or the transfers referred to in section 2(1)) is extinguished or reduced,

the dissolution, winding-up, extinguishment or reduction is to be disregarded
for the purposes of section 1(2)(b) or 2(2)(b).
(2)
Subsection (1)(b) does not apply to an extinguishment of liability by
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prescription under the law of Scotland.
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Disclosure of information
No obligation as to secrecy or other restriction on disclosure (however
imposed) prevents a bank or building society from giving to an authorised
reclaim fund information needed by the fund to enable it to deal with claims
20
made by virtue of section 1(2)(b) or 2(2)(b).
15
Banks making transfers under section 2: information in directors’ reports
(1)
Where—
(a)
the directors of a company that is a bank are required by section 415(1)
of the Companies Act 2006 (c. 46) to prepare a report for a particular
25
financial year, and
(b)
in that year the company made transfers in relation to which section 2
applied,

the report must identify each of the charities concerned and specify the amount
transferred to each of them.
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(2)
The requirements of subsection (1) are to be treated for the purposes of the
Companies Act 2006 as requirements of that Act.
Amendments
16
Amendments to the Financial Services and Markets Act 2000
The Financial Services and Markets Act 2000 (c. 8) is amended as set out in
35
Schedule 2.

Dormant Bank and Building Society Accounts Bill [HL]
Part 2 — Distribution of money under the general scheme
9

Part 2
Distribution of money under the general scheme
The distribution system: general
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Distribution of dormant account money by Big Lottery Fund
(1)
Subject to the provisions of this Part, the Big Lottery Fund shall distribute
5
dormant account money for meeting expenditure that has a social or
environmental purpose.
(2)
In this Part “dormant account money” means money transferred to the Big
Lottery Fund by a reclaim fund in pursuance of the object mentioned in section
5(1)(c), and also includes the proceeds of such money invested under—
10
(a)
paragraph 20(1) of Schedule 4A to the National Lottery etc. Act 1993
(c. 39), or
(b)
arrangements made under section 26(1).
(3)
The Fund may make grants or loans, or make or enter into other arrangements,
for the purpose of complying with subsection (1).
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(4)
A grant or loan may be subject to conditions (which may, in particular, include
conditions as to repayment with interest).
(5)
For the purposes of this Part, distributing money for meeting expenditure of a
particular description includes distributing money for the purpose of
establishing, or contributing to, endowments (including permanent
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endowments) in connection with expenditure of that description.
(6)
Schedule 3 makes further provision about the functions of the Fund in relation
to dormant account money.
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Apportionment of dormant account money
(1)
The apportionable income of the Big Lottery Fund in each financial year is to
25
be apportioned as follows and distributed accordingly—
(a)
a prescribed percentage for meeting expenditure in relation to England;
(b)
a prescribed percentage for meeting expenditure in relation to Wales;
(c)
a prescribed percentage for meeting expenditure in relation to
Scotland;
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(d)
a prescribed percentage for meeting expenditure in relation to
Northern Ireland.

The four percentages must add up to 100%.
(2)
Expenditure within paragraphs (a), (b), (c) and (d) of subsection (1) is referred
to in this Part as English expenditure, Welsh expenditure, Scottish expenditure
35
and Northern Ireland expenditure respectively.
(3)
For the purposes of this section, the apportionable income of the Big Lottery
Fund for a given financial year is

where—

Dormant Bank and Building Society Accounts Bill [HL]
Part 2 — Distribution of money under the general scheme
10

A is the amount of dormant account money received by the Fund in the
year;
B is the amount of the expenses defrayed in the year under subsections (1)
and (2) of section 27;
C is the amount paid in the year under subsection (3)(b) of that section.
5
(4)
In this section “prescribed” means prescribed by an order made by the
Secretary of State.
(5)
Before making an order under this section the Secretary of State shall consult—
(a)
the Welsh Ministers;
(b)
the Scottish Ministers;
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(c)
the Department of Finance and Personnel in Northern Ireland;
(d)
the Big Lottery Fund;
(e)
such other persons (if any) as the Secretary of State thinks appropriate.
(6)
An order under this section may not be made unless a draft of the statutory
instrument containing it has been laid before, and approved by a resolution of,
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each House of Parliament.
Distribution for England, Wales, Scotland and Northern Ireland
19
Distribution of money for meeting English expenditure
(1)
A distribution of dormant account money for meeting English expenditure
must be—
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(a)
made for meeting expenditure on or connected with the provision of
services, facilities or opportunities to meet the needs of young people,
(b)
made for meeting expenditure on or connected with—
(i)
the development of individuals’ ability to manage their
finances, or
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(ii)
the improvement of access to personal financial services,

or
(c)
made to a social investment wholesaler.
(2)
In this section—
“social investment wholesaler” means a body that exists to assist or enable
30
other bodies to give financial or other support to third sector
organisations;
“third sector organisation” means an organisation that exists wholly or
mainly to provide benefits for society or the environment.
20
Distribution of money for meeting Welsh expenditure
35
(1)
The Welsh Ministers may by order made by statutory instrument make
provision restricting the purposes for which, or the kinds of person to which, a
distribution of dormant account money for meeting Welsh expenditure may be
made.
(2)
Before making an order under this section the Welsh Ministers shall consult the
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Big Lottery Fund and such other persons (if any) as they think appropriate.

Dormant Bank and Building Society Accounts Bill [HL]
Part 2 — Distribution of money under the general scheme
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(3)
An order under this section may not be made unless a draft of the statutory
instrument containing it has been laid before, and approved by a resolution of,
the National Assembly for Wales.
21
Distribution of money for meeting Scottish expenditure
(1)
The Scottish Ministers may by order made by statutory instrument make
5
provision restricting the purposes for which, or the kinds of person to which, a
distribution of dormant account money for meeting Scottish expenditure may
be made.
(2)
Before making an order under this section the Scottish Ministers shall consult
the Big Lottery Fund and such other persons (if any) as they think appropriate.
10
(3)
An order under this section may not be made unless a draft of the statutory
instrument containing it has been laid before, and approved by a resolution of,
the Scottish Parliament.
22
Distribution of money for meeting Northern Ireland expenditure
(1)
The Department of Finance and Personnel in Northern Ireland may by order
15
make provision restricting the purposes for which, or the kinds of person to
which, a distribution of dormant account money for meeting Northern Ireland
expenditure may be made.
(2)
Before making an order under this section the Department of Finance and
Personnel shall consult the Big Lottery Fund and such other persons (if any) as
20
the Department thinks appropriate.
(3)
The power to make an order under this section is exercisable by statutory rule
for the purposes of the Statutory Rules (Northern Ireland) Order 1979
(S.I. 1979/1573 (N.I. 12)).
(4)
An order under this section may not be made unless a draft of it has been laid
25
before, and approved by a resolution of, the Northern Ireland Assembly.
Powers of Secretary of State or appropriate national authority
23
Directions to Big Lottery Fund
(1)
In exercising any of its functions under this Act the Big Lottery Fund shall
comply with any direction given to it under this section.
30
(2)
Any direction given under this section may not be made unless a draft
statutory instrument containing such a direction has been laid before, and
approved by a resolution of, each House of Parliament.
(3)
Subject to subsection (6), the power to give a direction under this section is
exercisable by the Secretary of State.
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(4)
A direction under this section may, in particular—
(a)
specify matters to be taken into account in determining the persons to
whom the Fund distributes money;
(b)
specify purposes for which (or matters to be taken into account in
determining the purposes for which) the Fund may or may not
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distribute money;

Dormant Bank and Building Society Accounts Bill [HL]
Part 2 — Distribution of money under the general scheme
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(c)
relate to the process used to determine what payments to make;
(d)
relate to—
(i)
the terms and conditions on which the Fund makes grants or
loans, or
(ii)
other arrangements under section 17(3).
5
(5)
A direction under this section may, in particular—
(a)
relate to arrangements under section 26;
(b)
relate to the management and control of money received by the Fund;
(c)
relate to the employment of staff;
(d)
relate to the form of accounts or methods and principles for the
10
preparation of accounts;
(e)
in so far as it relates to a matter specified in paragraphs (a) to (d)—
(i)
relate to the persons to whom or the terms on which the Fund
delegates functions;
(ii)
require the Fund to obtain the Secretary of State’s consent
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before taking action of a specified kind;
(iii)
require the Fund to provide information to the Secretary of
State.
(6)
A direction under this section may not be given by the Secretary of State in
relation to Welsh, Scottish or Northern Ireland expenditure, but—
20
(a)
may be given by the Welsh Ministers in relation to Welsh expenditure;
(b)
may be given by the Scottish Ministers in relation to Scottish
expenditure;
(c)
may be given by the Department of Finance and Personnel in Northern
Ireland in relation to Northern Ireland expenditure.
25

This subsection does not apply to a direction given by virtue only of subsection
(5).
(7)
A direction under this section may not be inconsistent with —
(a)
section 17(1), or
(b)
section 19 or an order under section 20, 21 or 22 (whichever is
30
applicable).
(8)
Any minister, ministers or department proposing to give a direction under this
section must consult the Big Lottery Fund before doing so.
(9)
The power of the Fund to appoint staff under paragraph 6 of Schedule 4A to
the National Lottery etc. Act 1993 (c. 39), or to make payments under
35
paragraph 18 of that Schedule (remuneration etc), has effect subject to any
directions under subsection (5)(c).
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Power to prohibit distribution in certain cases
(1)
The Secretary of State may by order prohibit the Big Lottery Fund from
distributing dormant account money to a person specified in the order if the
40
Secretary of State considers that the Fund is able (whether directly or
indirectly) to control or materially to influence the policy of that person in
carrying on any undertaking or performing any functions.
(2)
Before making an order under this section that—
(a)
relates to Welsh expenditure, Scottish expenditure or Northern Ireland
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expenditure, or

Dormant Bank and Building Society Accounts Bill [HL]
Part 2 — Distribution of money under the general scheme
13

(b)
would otherwise be likely, in the opinion of the Secretary of State, to
affect persons in Wales, Scotland or Northern Ireland,

the Secretary of State shall consult the Welsh Ministers, the Scottish Ministers
or the Department of Finance and Personnel in Northern Ireland (as
appropriate).
5
(3)
An order under this section is subject to annulment in pursuance of a
resolution of either House of Parliament.
(4)
The Secretary of State may require the Fund to provide such information as is
needed for the purpose of exercising his or her powers under this section.
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Power to add or remove distributors
10
(1)
The Secretary of State may by order amend this Act so that functions
exercisable by the body or bodies currently specified in section 17(1) are
exercisable instead by the body or bodies specified there as a result of the order.
(2)
The Secretary of State may exercise the power conferred by subsection (1) so as
to remove from section 17(1) a body that has contravened or failed to comply
15
with a requirement or prohibition imposed on it by or under section 23 or 24.

This is not to be read as limiting subsection (1).
(3)
An order under this section may—
(a)
make consequential amendments to this Act;
(b)
make transitional or supplemental provision (including provision
20
amending this Act).
(4)
Where two or more bodies are specified in section 17(1) as a result of an order
under this section, the order must provide that any amount transferred by a
reclaim fund in pursuance of the object mentioned in section 5(1)(c) is to be
apportioned between those bodies in the percentages specified in the order.
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(5)
Functions conferred on a body as a result of an order under this section are
exercisable notwithstanding anything to the contrary in any enactment or
instrument relating to the functions of the body.
(6)
Before making an order under this section the Secretary of State shall consult—
(a)
the Welsh Ministers;
30
(b)
the Scottish Ministers;
(c)
the Department of Finance and Personnel in Northern Ireland.
(7)
An order under this section may not be made unless a draft of the statutory
instrument containing it has been laid before, and approved by a resolution of,
each House of Parliament.
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Supplemental
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Power of Big Lottery Fund to enter into arrangements
(1)
The Big Lottery Fund may enter into arrangements with a body or person
(including a reclaim fund) for money that may be or has been paid to the Big
Lottery Fund to be held or invested, on its behalf, by that body or person.
40

Dormant Bank and Building Society Accounts Bill [HL]
Part 2 — Distribution of money under the general scheme
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(2)
The Big Lottery Fund may enter into arrangements with a reclaim fund for
payments that the Big Lottery Fund is required to make under section 27(3), (6),
(8) or (10) to be made on its behalf by the reclaim fund.
27
Expenses
(1)
The Big Lottery Fund may defray out of dormant account money any expenses
5
incurred by it in consequence of this Act.
(2)
Where the Fund makes an appointment under paragraph 5 of Schedule 3 it
may defray out of dormant account money any expenses incurred by the
appointee in consequence of the appointment.
(3)
At such times as the Secretary of State determines to be appropriate, the Big
10
Lottery Fund shall pay into the Consolidated Fund, out of dormant account
money received by it, such amounts as the Secretary of State determines to be
appropriate for defraying—
(a)
expenses incurred or to be incurred by the Secretary of State in respect
of the giving of directions under section 23 in relation to English
15
expenditure, and
(b)
any other expenses incurred or to be incurred by the Secretary of State
under this Act.
(4)
Amounts paid under subsection (3)(a) are to be paid out of money apportioned
under section 18 for meeting English expenditure.
20
(5)
For the purposes of this section, a direction under section 23 is not to be
regarded as a direction given in relation to English expenditure if it is given by
virtue only of subsection (5) of that section.
(6)
At such times as the Welsh Ministers determine to be appropriate, the Big
Lottery Fund shall pay to those ministers, out of money apportioned under
25
section 18 for meeting Welsh expenditure, such amounts as they determine to
be appropriate for defraying expenses incurred or to be incurred by them
under this Act.
(7)
The power of the Treasury under section 120(3) of the Government of Wales
Act 2006 (c. 32) to designate descriptions of sums received by the Welsh
30
Ministers (with the result that they become payable to the Secretary of State) is
not exercisable in relation to amounts payable to those Ministers under
subsection (6) above.
(8)
At such times as the Scottish Ministers determine to be appropriate, the Big
Lottery Fund shall pay into the Scottish Consolidated Fund, out of money
35
apportioned under section 18 for meeting Scottish expenditure, such amounts
as those ministers determine to be appropriate for defraying expenses incurred
or to be incurred by them under this Act.
(9)
The power of the Treasury under section 64(5) of the Scotland Act 1998 (c. 46)
to designate descriptions of receipts payable into the Scottish Consolidated
40
Fund (with the result that they become payable to the Secretary of State) is not
exercisable in relation to amounts payable into that Fund under subsection (8)
above.
(10)
At such times as the Department of Finance and Personnel in Northern Ireland
determines to be appropriate, the Big Lottery Fund shall pay into the
45
Consolidated Fund of Northern Ireland, out of money apportioned under
section 18 for meeting Northern Ireland expenditure, such amounts as that