Clause 12 - Transfer of eligible client money to reclaim fund

Dormant Assets Bill [Lords] – in the House of Commons at 8:30 pm on 31st January 2022.

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Amendment made: 1, page 12, line 9, at end insert—

“(4A) 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).”—(Craig Mackinlay.)

This amendment clarifies that money held by an investment institution not within clause 8(3) is not client money if it is the proceeds of a conversion to cash of a collective scheme investment and would be capable of being transferred to a reclaim fund if the holder was an investment institution within clause 8(3).