Search Legislation

Dormant Assets Act 2022

Status:

This is the original version (as it was originally enacted).

12Transfer of eligible client money to reclaim fund

This section has no associated Explanatory Notes

(1)This section applies where—

(a)an investment institution transfers to an authorised reclaim fund an amount of dormant eligible client money owing to a person, and

(b)the reclaim fund consents to the transfer.

(2)On the transfer of the amount—

(a)a person to whom the amount is payable immediately before the transfer ceases to have any right against any investment institution to payment of the amount, but

(b)that person acquires against the reclaim fund whatever right to payment of the amount the person would have had against the institution if the transfer had not happened.

(3)In this Act “investment institution”, in relation to an amount of eligible client money, means a person who—

(a)has permission under Part 4A of FSMA 2000 to carry on any activities, and

(b)has its head office or an establishment in the United Kingdom,

other than a person who is specified, or is within a class of persons specified, by an order under section 38 of FSMA 2000 (exemption orders).

(4)In this Act “eligible client money” means (subject to subsection (6)) client money held by an investment institution which—

(a)is held in the course of, or in connection with, the regulated activities covered by the institution’s Part 4A permission, and

(b)is not money that could be transferred to an authorised reclaim fund as mentioned in section 2(1)(a), 5(1)(a), 8(1)(a), 14(1)(a) or 21(2)(b).

(5)The reference in subsection (4)(b) to money that could be transferred as mentioned in section 8(1)(a) includes money held by an investment institution that is not within the definition in section 8(3) which—

(a)is proceeds of the conversion by the investment institution of a collective scheme investment into a right to payment of an amount, and

(b)could, if it were held by an investment institution falling within section 8(3), be transferred as mentioned in section 8(1)(a).

(6)Client money held in a Lifetime ISA is excluded from subsection (4) if its transfer to an authorised reclaim fund would result in liability to pay a withdrawal charge to HMRC.

(7)In subsections (4) and (6)client money” means money held in trust for a person or treated by the investment institution holding it as client money.

Back to top

Options/Help

Print Options

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

See additional information alongside the content

Show Explanatory Notes for Sections: Displays relevant parts of the explanatory notes interweaved within the legislation content.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

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
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. 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
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources