Member

60: After Clause 22, insert the following new Clause— “FCA rules: access to certain savings accounts for persons lacking capacity(1) The FCA must make rules requiring a relevant provider, where the conditions in subsection (3) are met, to enter into an agreement under which payments from a relevant account held by a person who lacks capacity to manage their own financial affairs (“the account holder”) are made to a person acting on the account holder’s behalf (“the recipient”) instead of to the account holder.(2) A “relevant account” means—(a) a Child Trust Fund within the meaning of the Child Trust Funds Act 2004;(b) a junior individual savings account within the meaning of regulations made under Chapter 3 (income from individual investment plans) of Part 6 (exempt income) of the Income Tax (Trading and Other Income) Act 2005;(c) an account of any other description specified by the FCA in rules made under this section.(3) The conditions are that—(a) there has been provided to the relevant provider either—(i) a document signed by a registered medical practitioner stating that the account holder lacks capacity to manage their own financial affairs, or(ii) a statement in writing by the recipient that they understand their duty to apply any money received in the best interests of the account holder, that they are aware that they may incur civil or criminal liability if they misapply the money, and that, so far as they are aware, no other person has authority to receive the money by virtue of a power of attorney or an order or appointment made by a court, and(b) the account holder has not informed the relevant provider that they do not wish such an agreement to be made.(4) Rules made under this section must—(a) secure that a relevant provider which makes a payment in accordance with such an agreement does not, by making it, incur any liability to the account holder, unless the provider has reasonable cause to believe that the recipient is likely to apply the money otherwise than in the account holder’s best interests, (b) require the recipient to apply any money received under the agreement in the best interests of the account holder, and(c) provide that the aggregate of the payments made under an agreement may not exceed £5,000 in any period of 12 months.(5) The purpose of rules made under this section is to enable access to be obtained to money held in a relevant account on behalf of an account holder who lacks capacity without the need for an order or appointment of the Court of Protection or any equivalent order of a court.(6) In this section “relevant provider” means an authorised person (within the meaning of the Financial Services and Markets Act 2000) who provides a relevant account.”Member’s explanatory statement This new clause seeks to require the FCA to make rules enabling money in a Child Trust Fund or Junior ISA belonging to a person who lacks capacity to be paid to someone acting in that person’s best interests, subject to safeguards, without an application to the Court of Protection.