Part 4: Consumer rights and disputes Chapter 3: Consumer Savings Schemes Section 287: Trust arrangements
This section requires a trader who intends to comply with the insolvency protection requirement in section 285 by using a trust arrangement to ensure consumer payments are held in a trust located in the United Kingdom.
	Subsection (2) requires the consumer’s payments to be held in the trust until either the funds have been redeemed by the consumer, or the payments have been returned to the consumer, unless payments can be released for one of the authorised purposes set out in subsection (3) and once the declaration in subsection (4) has been received in respect of a payment under 287, subsection (3), paragraph (a).
	Subsection (5) is intended to ensure a level of independent scrutiny of the use of funds held in Trust.
	Subsection (6) provides clarification of the meaning of "independent of the trader" specified in subsection (5).
	Subsection (7) requires the trader to meet any costs associated with setting up and managing the trust arrangement; consumer payments to the trust cannot be used to pay such costs.
	Subsection (8) requires the trader operating a consumer savings scheme to arrange for the trust’s accounts to be audited by an independent auditor every three years.
	Subsection (9) requires trustee(s) of a trust set up to receive consumer payments under a consumer savings scheme contract to ensure funds which have not been redeemed at the date of the trader’s insolvency are returned to those consumers. This subsection ensures monies held in trust are returned to consumers in the event of an insolvency, i.e. treated separately from other assets of the business.