Office of Public Sector Information
Section 5
1 (1) The articles of association of a reclaim fund must make provision—
(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—
(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.
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).
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 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 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 16(1).
(2) For the purposes of sub-paragraph (1)(c)—
(a) “repayment claims” means claims made by virtue of section 1(2)(b) or 2(2)(b);
(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.
Section 15
1 (1) Schedule 2 (regulated activities) is amended as follows.
(2) For the heading to Part 1 there is substituted “Regulated activities: general”.
(3) After that Part there is inserted—
(1) The matters with respect to which provision may be made under 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.”
2 After section 106 there is inserted—
(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.
(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 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 transfer scheme”.
(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—
“(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—
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 transfer into account, the transferee possesses, or will possess before the scheme takes effect, adequate financial resources.”
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 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 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;”.
7 After section 369 there is inserted—
(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.
(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 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.”
Dormant Bank and Building Society Accounts Act 2008