Court Funds Investment Account
Up until 1965 separate accounts were maintained for the Supreme Court and the County Courts. The Supreme Court Account received funds paid into court by suitors and invested them with a view to earning sufficient income to cover the interest paid to suitors. It also maintained holdings of gilts to match securities held for suitors in the books of the Accountant General. The County Court Account also received suitors' funds for investment but covered two forms of account - a deposit account receiving interest at a fixed rate, and an investment account with a variable rate.
These accounts were combined following the passing of the Administration of Justice Act 1965 to form the present Court Funds Investment Account, which backs the basic and special investment accounts available for suitors' funds. Interest is paid on these accounts at rates fixed by the Ministry of Justice with the concurrence of HM Treasury.
Regular meetings are held between CRND and the Office of the Accountant General to discuss the Fund's investment policy. The current objectives of the Fund are to maintain sufficient liquidity to meet withdrawals whilst producing sufficient interest and dividends to cover interest paid to suitors, and, where possible, the management expenses of the Office of the Accountant General and CRND.
Section 39(2) of the Administration of Justice Act 1982 requires surplus interest to be paid into the Consolidated Fund, Section 39(3) of the Act provides for any deficiency of interest to be made good out of the Consolidated Fund and Section 39(5) provides a guarantee by the Consolidated Fund of the capital due to suitors.