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[F1SCHEDULE 5AU.K.Registry

Textual Amendments

PART 3U.K.Accounts

CHAPTER 4U.K.Suspension and closure of accounts

Suspension of accountsU.K.

25.—(1) The registry administrator may suspend an account other than a central account in any of the following circumstances—

(a)if, on the death or dissolution of the account holder or the occurrence of an insolvency event in relation to the account holder, either—

(i)it is not clear who has the right to deal with the assets of the account holder; or

(ii)the registry administrator has not received instructions about the operation of the account from the person who has the right to deal with the assets of the account holder;

(b)if the registry administrator does not consider that the account holder is a fit and proper person to hold the account;

(c)if the registry administrator considers that the account has been, is being or may be used in relation to the commission of an offence under the law of any part of the United Kingdom or a country or territory outside the United Kingdom.

[F2(d)at the request of the account holder.]

(2) A suspended account may be subject to one or more of the following restrictions—

(a)no allowances may be transferred to the account except from the allocation account;

(b)no authorised representative may perform an action in relation to the account by accessing the registry;

(c)no allowances may be transferred from the account except to a central account.

(3) Where the registry administrator suspends an account [F3under sub-paragraph (1)(a), (b) or (c)], the registry administrator must give notice of the suspension to the account holder as soon as reasonably practicable.

(4) A notice under sub-paragraph (3) must include the reason for the suspension unless the registry administrator considers that its inclusion might prejudice the investigation or prosecution of an offence under the law of any part of the United Kingdom or a country or territory outside the United Kingdom or would be contrary to the interests of national security .

(5) Where, after a suspension under sub-paragraph (1), the registry administrator subsequently considers that the circumstances giving rise to the suspension no longer exist, the registry administrator must as soon as reasonably practicable—

(a)lift the suspension;

(b)give notice to the account holder that the suspension has been lifted.

(6) For the purposes of this paragraph an “insolvency event” occurs in relation to an account holder if—

(a)an order for the winding-up of the account holder is made;

(b)a resolution for the voluntary winding-up of the account holder is passed;

(c)the account holder enters into administration;

(d)a bankruptcy order is made in relation to the account holder or, in Scotland, an award of sequestration is made against the account holder;

(e)a provisional liquidator is appointed for the account holder under section 135 of the Insolvency Act 1986; or

(f)an event (an “overseas insolvency event”) occurs in a country or territory outside the United Kingdom in relation to the account holder that the registry administrator considers corresponds to an event (a “UK insolvency event”) referred to in paragraphs (a) to (e).

(7) For the purpose of considering under sub-paragraph (6)(f) whether an overseas insolvency event corresponds to a UK insolvency event, where, in consequence of the UK insolvency event, a person is appointed to an office (for example, liquidator or trustee in bankruptcy) to deal with the assets of the account holder, it is immaterial whether or not there is a corresponding appointment in consequence of the overseas insolvency event.]

Textual Amendments