Protection of authorised deposit-taking institutions from liability
61 Protection of authorised deposit-taking institutions from liability
An authorised deposit-taking institution—
does not incur liability, and is not obliged to make inquiries, in relation to any transaction concerning an account of a licensee kept with the institution or with some other financial institution, and
is, in relation to any such transaction, taken not to have any knowledge of a right of any person to money credited to such an account,
unless it would incur such a liability, be obliged to make such inquiries or be taken to have that knowledge in relation to an account kept with it in respect of a person absolutely entitled to the money held in that account.
This section does not relieve an authorised deposit-taking institution from any liability or obligation that it would have apart from this Act.
An authorised deposit-taking institution at which a licensee keeps an account for clients’ money does not, as regards any liability that the licensee has to the institution (other than a liability relating to that account), have a right to any of the money held in that account, whether by way of set-off, counterclaim, charge or otherwise.
This Act’s bill:Explanatory memorandumSecond reading speech
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