The Legal Services Act 2007 (Chartered Institute of Legal Executives) (Modification of Functions) Order 2014

Compensation fund

3.—(1) For the purpose of giving effect to compensation arrangements made under article 2, CILEx may make rules authorising it to establish and maintain a compensation fund (“the Fund”).

(2) Any such rules may in particular make provision—

(a) requiring a CILEx authorised entity to contribute to the Fund by making periodical payments to CILEx; and

(b) providing for different payments to be made by different descriptions of CILEx authorised entity.

(3) Any amount payable by virtue of such rules may be recovered as a debt due to CILEx.

(4) For the purposes of establishing and maintaining the Fund, CILEx may make rules authorising it to—

(a) invest any money which forms part of the Fund in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000(1) (as restricted by sections 4 and 5 of that Act);

(b) borrow money; and

(c) charge investments which form part of the Fund as security for borrowing by CILEx.

(5) In addition to the making of grants or other payments in accordance with any arrangements under article 2, CILEx may use the Fund to—

(a) repay money borrowed by CILEx for the purposes of the Fund and pay interest on any money borrowed for that purpose;

(b) pay any other costs, charges or expenses incurred by CILEx in connection with the Fund;

(c) pay any costs or damages incurred by CILEx, its employees or agents as a result of proceedings against it or them for any act or omission of its or theirs in good faith and in the exercise or purported exercise of any power under this article or article 2.

(1)

2000 c. 29.