33. Deposits under trust
Feedback & supportWhere a depositor of an insured deposit placed with a failed Scheme member holds the insured deposit as a trustee under a trust and the books of the Scheme member disclose —
depositor
“depositor” means any person who is entitled to repayment of a deposit, whether or not the deposit is made by him;
the identity of a beneficiary of the trust and his share of the insured deposit; or
the identity of a beneficiary of the trust and the total number of beneficiaries of the trust,any beneficiary who is an insured depositor, but not the depositor, shall be entitled, in respect of the insured deposit held under the trust as at the quantification date, to compensation from the Fund.
Where a depositor of an insured deposit placed with a failed Scheme member holds the insured deposit as a trustee under 2 or more trusts and the books of the Scheme member disclose —
insured deposit
“insured deposit” has the meaning as specified in the First Schedule;
the identity of a beneficiary of any one of those trusts and his share of the insured deposit; or
the identity of a beneficiary of any one of those trusts, the part of the insured deposit under that trust and the total number of beneficiaries of that trust,the beneficiary of each of those trusts who is an insured depositor, but not the depositor, shall be entitled, in respect of the part of the insured deposit held under the trust as at the quantification date, to compensation from the Fund.
For the purposes of subsections (1) and (2), where the beneficiaries of a trust consist of 2 or more insured depositors, each of those insured depositors shall be entitled, in respect of his share in the insured deposit as at the quantification date, to compensation from the Fund.
quantification date
“quantification date” means —(a)the date on which a Scheme member is wound up; or(b)where a Scheme member is not wound up, the date on which the notice of payment of compensation is published in the Gazette under section 30(4);
For the purposes of determining the share of each insured depositor in an insured deposit under subsection (3), each beneficiary of such an insured deposit held under a trust, whether or not he is an insured depositor, shall be deemed to have an equal share in the insured deposit or part of the insured deposit, as the case may be, unless there is an express provision to the contrary in the books of the failed Scheme member.
insured depositor
“insured depositor” means any of the following depositors: (a)an individual, except an individual who places a deposit in an account with a Scheme member in the name of a partnership or sole proprietorship;(b)a charity as defined in section 2(1) of the Charities Act, which is —(i)registered under section 5 of that Act;(ii)specified in the Schedule to that Act; or(iii)excepted by regulations made under that Act;(c)such other person or class of persons as may be prescribed,and includes —(i)in the case of a deposit held by a trustee under a trust, a beneficiary of the trust who is a person specified in paragraph (a), (b) or (c) or the estate of a deceased person; and(ii)in the case of a deposit held by a depositor in a client account, the depositor’s client who is a person specified in paragraph (a), (b) or (c) and whose moneys are held in the client account;
For the avoidance of doubt, subsection (4) does not affect any rights as between the beneficiaries themselves.