Schedule 7: Special Measures Paragraph 6: Payments received by special measures manager to be held on trust Background
The purpose of this paragraph is to ensure financial propriety and that the Special Measures Manager holds payments from the Accountable Person in a designated bank account on trust to be used solely for relevant building safety expenses. Having a separate trust fund account will ensure that monies are carefully managed and transparently accounted for during the term of the special measures order.
Example
A high rise rented building becomes subject to a special measures order due to the failures by the Accountable Persons. Each Accountable Person has equal responsibility for the relevant parts of the common parts within the building. At the onset of the order the appointed Special Measures Manager sets up a single designated trust fund account for that building.
All Accountable Persons pay their share, in equal measures, of the total payment as required by the order. This enables the Special Measures Manager to carry out the functions and terms under the order and to fund work required on the building. Following the completion of works, the building comes out of special measures and the residual balance of the trust account is distributed equally between all Accountable Persons, as agreed in writing between the parties.