Dormant Bank and Building Society Accounts Bill [HL]

The reclaim fund is a company run by the private sector and regulated by the FSA. We expect it to act reasonably and manage its affairs responsibly. Its directors will have a duty to act in accordance with company objects and articles of association, particularly those objects that are defined by this legislation. In order to obtain FSA authorisation, the fund must satisfy the ““fit and proper person”” test that forms part of the threshold conditions for authorisation under the Financial Services and Markets Act. I emphasise that the scheme will be highly transparent. The reclaim fund will prepare audited annual accounts. In addition, its articles will require it to publish detailed figures on the flows of money into and out of the scheme. If we believe that a reclaim fund has not managed its assets appropriately, we have powers under the legislation to take action. The Treasury would be able to direct the reclaim fund to comply with its company objects or any of its articles required by Schedule 1. If it did not comply with such a direction, the Government would be able to take action in court to ensure that that was rectified. The reclaim fund will have costs. An aspect of its necessary expenditure will be the costs involved in administration. It is reasonable that the income from dormant accounts covers the fund’s running costs, but those will need to be subject to public analysis through the transparent structure we are putting in place. I am grateful that the noble Baroness has said that this is a probing amendment. I hope that I have met the most precise of her probes. I have no doubt I will have an opportunity at a later stage to deal with any that I have not answered.