Dormant Bank and Building Society Accounts Bill [HL]

House of Commons

Session 2007 - 08
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Other Bills before Parliament

Dormant Bank and Building Society Accounts Bill [HL]

Dormant Bank and Building Society Accounts Bill [HL]
Part 2 — Distribution of money under the general scheme
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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.
5
(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 25(3), (6),
(8) or (10) to be made on its behalf by the reclaim fund.
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Expenses
(1)
The Big Lottery Fund may defray out of dormant account money any expenses
10
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
15
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 21 in relation to English
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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 16 for meeting English expenditure.
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(5)
For the purposes of this section, a direction under section 21 is not to be
regarded as a direction given in relation to English expenditure if it is given by
virtue only of subsection (4) 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
30
section 16 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
35
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
40
apportioned under section 16 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.

Dormant Bank and Building Society Accounts Bill [HL]
Part 3 — Final provisions
14

(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
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.
5
(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
Consolidated Fund of Northern Ireland, out of money apportioned under
section 16 for meeting Northern Ireland expenditure, such amounts as that
Department determines to be appropriate for defraying expenses incurred or
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to be incurred by that Department under this Act.
Interpretation
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Interpretation of Part 2
(1)
In this Part—
“dormant account money” has the meaning given by section 15(2);
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“English expenditure”, “Welsh expenditure”, “Scottish expenditure” and
“Northern Ireland expenditure” have the meaning given by section
16(2);
“financial year” means a period of 12 months ending with 31 March;
“reclaim fund” has the meaning given by section 5(1).
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(2)
A reference in this Part to the distribution of money is to be read as including
a reference to making or entering into arrangements in accordance with section
15(3), and related expressions are to be read accordingly.

See also section 15(5).
Part 3
25
Final provisions
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Orders
A power of the Treasury or the Secretary of State to make an order under this
Act is exercisable by statutory instrument.
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Directions
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(1)
A direction under this Act must be given in writing.
(2)
A direction under this Act may be varied or revoked by a subsequent direction.
29
Extent
This Act extends to England and Wales, Scotland and Northern Ireland.
30
Commencement
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(1)
Parts 1 and 2 come into force in accordance with provision made by order of
the Treasury.

Dormant Bank and Building Society Accounts Bill [HL]
Part 3 — Final provisions
15

(2)
An order under this section—
(a)
may make different provision for different purposes;
(b)
may make transitional or saving provision.
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Short title
This Act may be cited as the Dormant Bank and Building Society Accounts Act
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2008.

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Dormant Bank and Building Society Accounts Bill [HL]
Schedule 1 — Provision to be made in articles of association of reclaim fund

Schedules
Schedule 1
Section 5

Provision to be made in articles of association of reclaim fund
Expenses
1     (1)
The articles of association of a reclaim fund must make provision—
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(a)
allowing it to defray its expenses out of its income, but
(b)
preventing the defraying of expenses that are unreasonable, or to the
extent that they are unreasonable.
      (2)
For the purposes of this paragraph “expenses” includes, in particular, the
costs of—
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(a)
paying fees or remuneration to any member, officer, employee or
other person for services provided to the reclaim fund in connection
with the carrying out of its functions;
(b)
reimbursing any person incurring costs in relation to services
provided in connection with the formation of the fund.
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No distribution to members
2
The articles of association of a reclaim fund must make provision preventing
a distribution, including a distribution on winding up, of any of its income
or assets to its members (except as allowed for by provision made by virtue
of paragraph 1).
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Publication of information
3     (1)
The articles of association of a reclaim fund must make provision requiring
it to publish, as soon as possible after the end of each financial year of the
fund—
(a)
its annual accounts and reports for that year (within the meaning
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given by section 471 of the Companies Act 2006 (c. 46));
(b)
the name of each bank and building society that transferred money
to the fund in that year and the amount transferred by each one;
(c)
the name of each bank and building society in respect of whose
accounts payments were made from the fund in that year following
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repayment claims and, in relation to each of those banks and
building societies, the total of the payments made;
(d)
the total amount transferred in that year to the body or bodies for the
time being specified in section 15(1).
      (2)
For the purposes of sub-paragraph (1)(c)—
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(a)
“repayment claims” means claims made by virtue of section 1(2)(b)
or 2(2)(b);

Dormant Bank and Building Society Accounts Bill [HL]
Schedule 2 — Amendments to the Financial Services and Markets Act 2000
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(b)
where an account was previously operated by a bank or building
society as part of a business currently carried on by another bank or
building society (“the successor”), the account is treated as that of the
successor.
Schedule 2
5
Section 14

Amendments to the Financial Services and Markets Act 2000
Amendments to Part 2
1     (1)
Schedule 2 (regulated activities) is amended as follows.
      (2)
For the heading to Part 1 there is substituted “Regulated activities:
general”.
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      (3)
After that Part there is inserted—
“Part 1A
Regulated activities: reclaim funds
Activities of reclaim funds
9A    (1)
The matters with respect to which provision may be made under
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section 22(1) in respect of activities include, in particular, any of
the activities of a reclaim fund.
      (2)
“Reclaim fund” has the meaning given by section 5(1) of the
Dormant Bank and Building Society Accounts Act 2008.”
Amendments to Part 7
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2
After section 106 there is inserted—
“106A
  Reclaim fund business transfer scheme
(1)
A scheme is a reclaim fund business transfer scheme if, under the
scheme, the whole or part of the business carried on by a reclaim
fund is to be transferred to one or more other reclaim funds.
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(2)
“Reclaim fund” has the meaning given by section 5(1) of the Dormant
Bank and Building Society Accounts Act 2008.”
3
In section 107 (application for order sanctioning transfer scheme), in
subsection (1), for “or a banking business transfer scheme” there is
substituted “, a banking business transfer scheme or a reclaim fund business
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transfer scheme”.
4     (1)
Section 111 (sanction of the court for business transfer schemes) is amended
as follows.
      (2)
In subsection (1), for “or a banking business transfer scheme” there is
substituted “, a banking business transfer scheme or a reclaim fund business
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transfer scheme”.

Dormant Bank and Building Society Accounts Bill [HL]
Schedule 2 — Amendments to the Financial Services and Markets Act 2000
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      (3)
In subsection (2)—
(a)
at the beginning of paragraph (a) there is inserted “in the case of an
insurance business transfer scheme or a banking business transfer
scheme,”;
(b)
after that paragraph there is inserted—
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“(aa)
in the case of a reclaim fund business transfer scheme,
the appropriate certificate has been obtained (as to
which see Part 2A of that Schedule);”.
5
In Schedule 12, after Part 2 there is inserted—
“Part 2A
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Reclaim fund business transfer schemes
Certificate as to financial resources
9A
For the purposes of section 111(2) the appropriate certificate, in
relation to a reclaim fund business transfer scheme, is a certificate
given by the Authority certifying that, taking the proposed
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transfer into account, the transferee possesses, or will possess
before the scheme takes effect, adequate financial resources.”
Amendments to Part 24
6     (1)
Section 359 (administration order) is amended as follows.
      (2)
In subsection (3) (persons treated as unable to pay their debts), the “and” at
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the end of paragraph (a) is omitted and at the end of paragraph (b) there is
inserted “, and—
(c)
an authorised reclaim fund in default on an obligation to pay
a sum payable as a result of a claim made by virtue of section
1(2)(b) or 2(2)(b) of the Dormant Bank and Building Society
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Accounts Act 2008.”
      (3)
In subsection (4) (definitions), at the appropriate place there is inserted—
““authorised reclaim fund” means a reclaim fund within the meaning
given by section 5(1) of the Dormant Bank and Building Society
Accounts Act 2008 that is authorised for the purposes of this Act;”.
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7
After section 369 there is inserted—
“369A
Reclaim funds: service of petition etc on Authority
(1)
If a person other than the Authority presents a petition for the
winding up of an authorised reclaim fund, the petitioner must serve
a copy of the petition on the Authority.
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(2)
If a person other than the Authority applies to have a provisional
liquidator appointed under section 135 of the 1986 Act (or Article 115
of the 1989 Order) in respect of an authorised reclaim fund, the
applicant must serve a copy of the application on the Authority.
(3)
In this section “authorised reclaim fund” means a reclaim fund
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within the meaning given by section 5(1) of the Dormant Bank and
Building Society Accounts Act 2008 that is authorised for the
purposes of this Act.”