262.Paragraph 27 amends section 62A of the 1980 Act and section 70 of the 2010 Act.
263.Section 62A of the 1980 Act is amended to allow the Council to apply to the Court to recover a specified portion of any expenditure incurred as a result of any intervention under new sections 45A and 46A of the 1980 Act. However, it can only do so where the conduct giving rise to the intervention was carried on with the consent or connivance of, or was attributable to any neglect on the part of, the individual against whom the order is sought.
264.Section 70 of the 2010 Act makes provision to safeguard the interests of clients of a licensed provider which is ceasing or has already ceased by giving the approved regulator the power to issue directions setting out how client documents are to be dealt with. The amendment to section 70 vests any client funds in the approved regulator alone (together with the right to deal with the client account). It also allows the approved regulator, to apply to the Court to recover a specified portion of any expenditure reasonably incurred as a result of any intervention under section 70 of the 2010 Act, from a responsible official such as a current or former investor in, or a current or former director of, the licensed provider. However, it can only do so where the conduct giving rise to the intervention was carried on with the consent or connivance of, or was attributable to any neglect on the part of, the individual against whom the order is sought.
Schedule 1 – Law Society of Scotland Recovery of expenses of intervention