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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the report must identify each of the charities concerned and specify the amount
transferred to each of them.
(2)
The requirements of subsection (1) are to be treated for the purposes of the
Companies Act 2006 (c. 46) as requirements of that Act.
Amendments
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Amendments to the Financial Services and Markets Act 2000
The Financial Services and Markets Act 2000 (c. 8) is amended as set out in
Schedule 2.
Part 2
Distribution of money under the general scheme
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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
dormant account money for meeting expenditure that has a social or
environmental purpose.
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(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—
(a)
paragraph 20(1) of Schedule 4A to the National Lottery etc. Act 1993
(c. 39), or
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(b)
arrangements made under section 24(1).
(3)
The Fund may make grants or loans, or make or enter into other arrangements,
for the purpose of complying with subsection (1).
(4)
A grant or loan may be subject to conditions (which may, in particular, include
conditions as to repayment with interest).
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(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
endowments) in connection with expenditure of that description.
(6)
Schedule 3 makes further provision about the functions of the Fund in relation
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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
be apportioned as follows and distributed accordingly—
(a)
a prescribed percentage for meeting expenditure in relation to England;
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(b)
a prescribed percentage for meeting expenditure in relation to Wales;
(c)
a prescribed percentage for meeting expenditure in relation to
Scotland;

Dormant Bank and Building Society Accounts Bill [HL]
Part 2 — Distribution of money under the general scheme
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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
5
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—
A is the amount of dormant account money received by the Fund in the
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year;
B is the amount of the expenses defrayed in the year under subsections (1)
and (2) of section 25;
C is the amount paid in the year under subsection (3)(b) of that section.
(4)
In this section “prescribed” means prescribed by an order made by the
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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;
(c)
the Department of Finance and Personnel in Northern Ireland;
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(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,
each House of Parliament.
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Distribution for England, Wales, Scotland and Northern Ireland
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Distribution of money for meeting English expenditure
(1)
A distribution of dormant account money for meeting English expenditure
must be—
(a)
made for meeting expenditure on or connected with the provision of
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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
(ii)
the improvement of access to personal financial services,
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or
(c)
made to a social investment wholesaler.
(2)
In this section—
“social investment wholesaler” means a body that exists to assist or enable
other bodies to give financial or other support to third sector
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organisations;
“third sector organisation” means an organisation that exists wholly or
mainly to provide benefits for society or the environment.

Dormant Bank and Building Society Accounts Bill [HL]
Part 2 — Distribution of money under the general scheme
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Distribution of money for meeting Welsh expenditure
(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.
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(2)
Before making an order under this section the Welsh Ministers shall consult the
Big Lottery Fund and such other persons (if any) as they think appropriate.
(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.
10
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Distribution of money for meeting Scottish expenditure
(1)
The Scottish 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 Scottish expenditure may
be made.
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(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.
(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.
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Distribution of money for meeting Northern Ireland expenditure
(1)
The Department of Finance and Personnel in Northern Ireland may by order
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.
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(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
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
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(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
before, and approved by a resolution of, the Northern Ireland Assembly.
Powers of Secretary of State or appropriate national authority
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Directions to Big Lottery Fund
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(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.
(2)
Subject to subsection (5), the power to give a direction under this section is
exercisable by the Secretary of State.
(3)
A direction under this section may, in particular—
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Dormant Bank and Building Society Accounts Bill [HL]
Part 2 — Distribution of money under the general scheme
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(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
distribute money;
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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 15(3).
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(4)
A direction under this section may, in particular—
(a)
relate to arrangements under section 24;
(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
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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.
(5)
A direction under this section may not be given by the Secretary of State in
relation to Welsh, Scottish or Northern Ireland expenditure, but—
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(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.
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This subsection does not apply to a direction given by virtue only of subsection
(4).
(6)
A direction under this section may not be inconsistent with —
(a)
section 15(1), or
(b)
section 17 or an order under section 18, 19 or 20 (whichever is
35
applicable).
(7)
Any minister, ministers or department proposing to give a direction under this
section must consult the Big Lottery Fund before doing so.
(8)
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
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paragraph 18 of that Schedule (remuneration etc), has effect subject to any
directions under subsection (4)(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
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Secretary of State considers that the Fund is able (whether directly or

Dormant Bank and Building Society Accounts Bill [HL]
Part 2 — Distribution of money under the general scheme
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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
expenditure, or
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(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).
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(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
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(1)
The Secretary of State may by order amend this Act so that functions
exercisable by the body or bodies currently specified in section 15(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 15(1) a body that has contravened or failed to comply
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with a requirement or prohibition imposed on it by or under section 21 or 22.

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
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amending this Act).
(4)
Where two or more bodies are specified in section 15(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;
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(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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