Fundholders
117.New section 28 sets out that the fundholder of the relevant account is authorised to act on the instructions of a withdrawer to the extent of the authority in the withdrawal certificate and must not allow any operations on the account other than those authorised by the withdrawal certificate. Section 28(3) allows fundholders to release statements and other information on the adult’s current and second accounts to the withdrawer whilst the withdrawal certificate is valid.
118.Section 28A allows fundholders of an account from which funds are to be transferred in accordance with a certificate issued under section 24G to act to the extent authorised by the certificate.
119.New section 29 sets out that fundholders will be liable for funds taken out of the adult’s account at any time when they were aware that the withdrawer’s authority had been terminated or suspended. Having met the liability, a fundholder can then recover from the withdrawer.
