Regulation 55 Reserve fund

(1)

The deposit management organisation which is first appointed under regulation 51(1) must establish a reserve fund within 5 years of the date of its appointment.

(2)

The deposit management organisation which establishes a reserve fund, and any deposit management organisation which is subsequently appointed in its place, must—

(a)

maintain the reserve fund in such amount as is necessary to fund the payments set out in paragraph (3), or

(b)

maintain the reserve fund in such amount as the Welsh Ministers may direct.

(3)

In this regulation “reserve fund” means a fund out of which, in the event of the deposit management organisation’s appointment being revoked, payments may be made by the interim scheme administrator in respect of—

(a)

expenditure incurred by the deposit management organisation in the exercise of its functions under or in connection with the Scheme before its appointment was revoked, and

(b)

expenditure incurred by the interim scheme administrator in the exercise of its functions under or in connection with the Scheme before the appointment of another person as the deposit management organisation (see Chapter 11 of this Part).