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3.—(1) Deductions from a stakeholder account may only be made to the extent set out in this paragraph.U.K.
(2) Subject to sub-paragraph (5), charges for the management of, and other expenses in connection with, a stakeholder account may be recovered from the account to the extent that they do not exceed whichever is the greater of—
(a)3/730 per cent of the value of the child’s rights in the account for each day on which the account is held; or
(b)3/730 per cent of the value of the investments under the account for each day on which the account is held.
(3) For the purposes of sub-paragraph (2)—
(a)the frequency, which must be daily, weekly or monthly, with which rights or investments are to be valued; and
(b)where valuation is to take place weekly or monthly, the day of the week or, as the case may be, the date in the month on which it is to take place,
must be specified in advance in writing by the account provider to the registered contact, and the specification may not be amended during the period of 12 months after the date on which it is made.
(4) When calculating the value of a child’s rights or of investments for the purposes of sub-paragraph (2), where the account provider has specified under sub-paragraph (3) that they are to be valued weekly or monthly—
(a)where they are to be valued weekly, they are to be valued on such day of the week (“the specified day”) as has been so specified by the account provider (except that, where that day is not a working day, the rights are to be valued on the next working day), and the value of the rights on each subsequent day prior to the next specified day is to be taken to be the value of the rights on the previous specified day; and
(b)where they are to be valued monthly, they are to be so valued on such date in each month (“the specified date”) as has been so specified by the account provider (except that, where that date is not a working day, the rights are to be valued on the next working day), and the value of the rights on each subsequent day prior to the next specified date is to be taken to be the value of the rights on the previous specified date.
(5) The following charges and expenses may be deducted in full from the account and are not subject to and do not count towards the limit provided for in sub-paragraph (2)—
(a)any stamp duty, stamp duty reserve tax or other charges incurred by the account provider directly or indirectly in the sale or purchase of investments held under the account;
(b)any charges or expenses incurred by the account provider directly or indirectly in complying with an order of the court or any other requirements imposed by law; and
(c)expenses incurred by the account provider in complying with its obligations under regulation 8(2)(d) and (e).
(6) Valuations for the purpose of sub-paragraph (2) shall be after the deduction of any charges or expenses properly deducted from the account under sub-paragraph (5).