18.—(1) A user’s or holder’s entitlement to a distribution of relevant funds from an asset pool must be determined by reference to the amount of relevant funds which that person is entitled to claim against the institution (see regulation 17).
(2) Regulation 19 makes provision about entitlements to a distribution of relevant funds where there is a shortfall in an asset pool.
(3) Relevant funds claims are to be paid from an asset pool in priority to all other claims.
(4) Paragraph (3) is subject to paragraphs (5) and (6) and regulation 21(4) (which relates to late claims).
(5) Relevant funds claims do not take priority over the costs of distribution.
(6) Relevant funds claims do not take priority over any third party’s fees and expenses for operating a relevant funds account in so far as the party has a right of set off or a security right against the funds for the fees or expenses.