(This note is not part of the Regulations)
These Regulations require the National Debt Commissioners (“the Commissioners”) to repay to the National Loans Fund unclaimed moneys currently held by them in respect of specified National Savings and Investments (“NS&I”) products: national savings stamps, national savings gift tokens, British Savings Bonds, premium savings bonds and stock in the register (such as Income Bonds and Pensioners Guaranteed Income Bonds).
The Regulations provide that the sums repaid by the Commissioners shall be credited by the Director of Savings to an investment account in the National Savings Bank, where they will be held either in a Special Director's account (on behalf of the persons entitled) or in an investment account in the name of the persons entitled.
Once existing unclaimed moneys in all the specified products are transferred to an investment account in the National Savings Bank in accordance with these Regulations, customers will not lose their entitlement in respect of these sums. The liability of the Director to make repayment in respect of existing unclaimed moneys will become a liability in respect of investment deposits in the National Savings Bank and, by virtue of section 120(1) of the Finance Act 1980, that liability will be a charge on the National Loans Fund with recourse to the Consolidated Fund.
The Regulations also terminate the obligation of the Director of Savings to transfer unclaimed moneys in NS&I products to the Commissioners and they put an end to the statutory duties of the Commissioners to invest the sums transferred. Instead, where moneys are deemed to be unclaimed in respect of premium savings bonds and stock in the register after these Regulations come into force, the Director will be required to transfer those new unclaimed sums to investment accounts in the National Savings Bank. (National savings stamps, national savings gift tokens and British Savings Bonds are no longer on sale and no further provision is required in the Regulations in respect of these three products.)
The liability of the Director of Savings to make repayment in respect of any future unclaimed moneys transferred to the National Savings Bank will also be a liability to make repayment in respect of investment deposits in the National Savings Bank and that liability will be a charge on the National Loans Fund with recourse to the Consolidated Fund (by virtue of section 120(1) of the Finance Act 1980).
A full regulatory impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.