After section 2 of the 2008 Act (transfer of balances to charities, with proportion to reclaim fund) insert -

"2A Return of surplus alternative scheme assets

(1) This section applies where an authorised reclaim fund has determined that a proportion of its alternative scheme assets does not need to be retained for the purposes of achieving any of its objects other than the transfer of money to the body or bodies for the time being specified in section 16(1).

(2) For the purposes of this section the reclaim fund's "alternative scheme assets" are the money and other assets which are -

(a) held by the reclaim fund, and

(b) derived from amounts transferred to it by virtue of section 2 ("section 2 transfers").

(3) Where this section applies the reclaim fund must take the following steps.

(4) Step 1 is to determine the amount corresponding to the proportion of its alternative scheme assets that does not need to be retained.

(5) Step 2 is to allocate a share of that amount to each bank or building society that has made section 2 transfers. The allocation is to be made in the way the reclaim fund considers appropriate, having regard to the amounts transferred by each bank or building society.

(6) Step 3 is to transfer the allocated share to each bank or building society concerned, unless it has -