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Paragraph 20 Conditions relating to closure of the scheme by the scheme administrator

Original text. Later amendments are not shown.

(1)

The scheme must provide that—

(a)

the scheme administrator may close the scheme where the scheme administrator considers it appropriate to do so;

(b)

the scheme administrator must, before closing the scheme, give the Secretary of State a notice stating that the scheme administrator intends to close the scheme;

(c)

the Secretary of State must, within the period of 25 working days beginning with the date on which the Secretary of State received a notice given under the provision included in the scheme in accordance with paragraph (b), direct the scheme administrator as to the date on which the scheme is to be closed;

(d)

the date on which the scheme is to be closed under the direction of the Secretary of State under provision included in the scheme in accordance with paragraph (c) must be within the period of 18 months beginning with the date of the direction;

(e)

where the Secretary of State makes a direction under provision included in the scheme in accordance with paragraph (c), the scheme administrator must give to every scheme member, within such period as the Secretary of State may direct, a notice stating—

(i)

that the scheme is to be closed, and

(ii)

the date on which the scheme is to be closed;

(f)

the scheme administrator must, before the scheme is closed, provide to the scheme administrator of another landlord redress scheme such information relating to—

(i)

scheme members, and

(ii)

complaints made under the scheme (including complaints which have been closed),

as would enable that scheme administrator to continue the operation of the compulsory aspects of the scheme;

(g)

where, under paragraph (f), there is more than one scheme administrator to whom the information might be provided, the Secretary of State may direct the scheme administrator as to which of those scheme administrators to provide the information to.

(2)

The scheme must provide that where the administration of the scheme has been transferred to the Secretary of State, or to a person acting on behalf of the Secretary of State, under provision included in the scheme in accordance with paragraph 13, the scheme administrator may not exercise the power conferred by provision included in the scheme in accordance with sub-paragraph (1)(a).

(3)

The scheme must provide that, where the scheme administrator has given the Secretary of State a notice under provision included in the scheme in accordance with sub-paragraph (1)(b) stating that the scheme administrator intends to close the scheme, the Secretary of State may, at any time before the scheme closes, transfer the administration of the scheme to a different administrator under provision included in the scheme in accordance with paragraph 13.