Clause 14 - Transfer of eligible proceeds or distribution to reclaim fund

Dormant Assets Bill [Lords] – in a Public Bill Committee am 9:45 am ar 11 Ionawr 2022.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Question proposed, That the clause stand part of the Bill.

Photo of Nusrat Ghani Nusrat Ghani Ceidwadwyr, Wealden

With this it will be convenient to discuss clauses 15 and 16 stand part.

Photo of Nigel Huddleston Nigel Huddleston The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport

Clauses 14 to 16 define the securities assets and participants in scope of the scheme. Clause 14 provides that a traded public company can transfer dormant proceeds or a distribution relating to a share to an authorised reclaim fund.

Clause 15 defines the securities assets in scope of the scheme: dormant share conversion proceeds; cash distributions from a share; and proceeds from corporate actions. As practice varies, share conversion proceeds in the securities sector are in scope only on the condition that the terms governing them enable a gone-away shareholder to reclaim the price of the share at the point at which it was converted to cash.

Clause 16 defines dormancy for securities assets. Share conversion proceeds or a distribution can be classed as dormant if the shareholder has been defined as “gone-away” for at least 12 years. This clause defines “gone-away” broadly, to accommodate a range of industry practices that are expected to evolve over time, as with other products.

Question put and agreed to.

Clause 14 accordingly ordered to stand part of the Bill.

Clauses 15 and 16 ordered to stand part of the Bill.