Part 4

Consumer rights and disputes
Chapter 3

Consumer Savings Schemes

Trust arrangements
287
1
Where a trader relies on arrangements under this section for the purpose of satisfying section 285, the trader must ensure that all payments made by a consumer under a consumer savings scheme contract are held on trust for the consumer, in the United Kingdom, by one or more persons appointed as trustees for the consumer.
2
Subject to subsection (3), the monies are to be held on trust for the consumer as required by subsection (1) until—
a
the funds in the consumer’s account have been redeemed, or
b
any payments made by the consumer in respect of the consumer savings scheme contract have been returned to the consumer.
3
The trustees may authorise the use of monies held on trust for the consumer as required by subsection (1)—
a
to pay suppliers for goods, services or digital content to be provided to the consumer in accordance with the terms of the consumer savings scheme contract,
b
to return payments to the consumer in exceptional circumstances, or
c
to pay any profits after the consumer has redeemed all of the funds in their account.
4
For the purposes of subsection (3)(a), trustees may only authorise the release of monies on receipt of a declaration by the trader that the trader is solvent.
5
The trustee, or where there is more than one trustee, the majority of persons appointed as trustees for the purpose of subsection (1), must be independent of the trader.
6
For the purpose of subsection (5), a person is independent of the trader in relation to a trust only if—
a
the person has no interest in the assets of the trader or of the trust otherwise than as a trustee of that trust, and
b
the person is neither connected with, nor an associate of—
i
the trader, or
ii
any person for the time being acting as an insolvency practitioner in relation to the trader.
7
The cost of administering the trust must be paid for by the trader.
8
The trader must arrange for an independent auditor to be appointed to audit the accounts of the trust every three years.
9
In the event of a trader’s insolvency, monies held on trust for a consumer by the trustees in accordance with this section must be returned to the consumer.
S. 287 not in force at Royal Assent, see s. 339(1)
S. 287 in force at 1.1.2026 by S.I. 2025/272, reg. 3