The Legal Services Act 2007 (Designation as a Licensing Authority) (No. 2) Order 2011

Bank accounts of licensed bodies

4.—(1) This article applies where a licensed body keeps an account with a bank or a building society in accordance with licensing rules made by the Society.

(2) The bank or building society—

(a) does not incur any liability;

(b) is not under any obligation to make any inquiry;

(c) is not deemed to have any knowledge of any right of any person to any money paid or credited to the account,

which it would not incur, or be under, or be deemed to have, in the case of an account kept by a person entitled absolutely to all the money paid or credited to it.

(3) The bank or building society has no recourse or right against money standing to the credit of the account, in respect of any liability of the licensed body to the bank or society, other than a liability in connection with the account.

(4) In this article—

(a) “bank” means—

(i) the Bank of England;

(ii) a person (other than a building society) who under Part 4 of the Financial Services and Markets Act 2000(1) has permission to accept deposits;

(iii) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3(2) to that Act that has permission under paragraph 15 of that Schedule(3) (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule(4)) to accept deposits; and

(b) “building society” means a building society incorporated (or deemed to be incorporated) under the Building Societies Act 1986(5).

(1)

2000 c. 8.

(2)

Paragraph 5(b) is substituted by S.I. 2006/3221.

(3)

Paragraph 15 is amended by paragraph 40(1) and (19)(a) of Schedule 25 to the Enterprise Act 2002 (c. 40), section 33(9) of the Consumer Credit Act 2006 (c. 14), S.I. 2003/2066 and S.I. 2007/3253.

(4)

There are amendments to paragraph 12 which are not relevant to this Order.

(5)

1986 c. 53.