Regulation 7 Custodial scheme
A custodial scheme is a scheme under which:—
(a)
no fee is payable by the landlord to the scheme administrator in respect of participation in, or otherwise in connection with, the scheme;
(b)
the tenancy deposit is paid by the landlord to the scheme administrator;
(c)
the scheme administrator pays the tenancy deposit into an account, known as a designated account, which is maintained for the purpose of holding accounts; and
(d)
the tenancy deposit is held in a designated account until it falls to be repaid in accordance with these Regulations.