Search Legislation

Dormant Bank and Building Society Accounts Act 2008

Section 5: Functions etc of a reclaim fund and Schedule 1: Provision to be made in articles of association of reclaim fund

46.A “reclaim fund” will receive money from dormant accounts transferred from individual banks and building societies under sections 1 and 2. Section 5 defines “reclaim fund”. It must be a company incorporated under the Companies Act 2006 with restricted purposes (company objects). The main purposes are:

  • the management of money transferred from dormant accounts;

  • the payment of claims by dormant account holders whose balances have been transferred into the scheme; and

  • the transfer of surplus money to the Big Lottery Fund (or any other distributor appointed under section 24).

47.The reclaim fund will be expected to keep sufficient reserves of money to meet anticipated levels of claims for repayment by customers, to comply with rules imposed by the Financial Services Authority and to cover its running costs.

48.Schedule 1 sets out further provision that must be included in the articles of association of a reclaim fund. The requirements are designed to ensure that the deductions of expenses which are made from a reclaim fund’s income are reasonable, that no distributions are made to its members and that information about levels of participation in the dormant accounts schemes is published.

49.Subsection (4) contains a direction-making power for the Treasury to ensure compliance by a reclaim fund with its articles of association.

50.Subsection (5) requires the Treasury to lay before Parliament any directions it gives under subsection (4).

51.The British Bankers’ Association and Building Societies Association have committed to lead on the selection or establishment of a body to act as a reclaim fund.

Back to top

Options/Help

Print Options

Close

Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources