Countdown to investment firm participation in the scheme:
Legislation expanding the scheme - COMPLETE
Updated industry good practice guide on tracing customers - COMPLETE
Decision on allocation of funding - COMPLETE
Enabling regulatory change - IN PROGRESS FCA final rules expected Q4 2023
T&Cs / legal agreement with RFL - IN PROGRESS conclusion expected early 2024
Scheme open for first transfers of money - PENDING expected 2024
The Dormant Assets Scheme is an industry-led voluntary initiative established in 2011 which is backed by the UK Government and regulators. To date, £1.4bn of dormant assets – money in financial accounts where the firm is no longer in contact with the customer – has been transferred into the scheme from banks and building societies.
The money is then put to use by charities and organisations for the benefit of social and environmental causes.
The Investment sector will be able to provide the first transfers of money into an expanded Scheme in 2024.
Watch our webinar, the first section of which discusses the Scheme, with:
Operated by Reclaim Fund Limited (RFL), the Scheme has released £900m to good causes across the United Kingdom, and in future will be able to do more now that it is being expanded into other financial services sectors such as ours.
Importantly, assets are only able to be transferred into the Scheme once firms have completed their first priority of tracing and reuniting owners with their assets. Even then, asset owners are able - at any time - to reclaim the amount that would have been due to them had the transfer to the Scheme not taken place. This includes any valuation growth for assets in investment funds after the transfer date.
The Scheme deploys money that would otherwise remain dormant and puts it to good use across the UK. Firms are able to demonstrate their social conscience and practically support a wide range of charitable and other organisations in their work. Recipient organisations report annually on how the money has been deployed; this information can be utilised by firms in their own shareholder reports. As the assets can be reclaimed in full at any time participation comes at no risk to either the asset owner or the firm. Existing options for paying dormant assets away to charity or to the originating fund are fairly limited, and in the case of direct transfer to charity contain no ability to reclaim the money at a later date, or to release the obligation to the asset owner.
The Dormant Assets Act 2022 expanded the Scheme to the Investment & Wealth Management and the Securities and Insurance sectors.
Following two more planned enabling interventions, the first transfer of money into the expanded Scheme is expected in 2024:
IA Best Practice Guide:
Allocation of funding to beneficiaries:
John Allan | Head of Innovation and Operations Unit
John can also point members to:
Jasveer Singh | Industry Champion for the I&WM Sector and member of the Dormant Assets Expansion Board
Steve Doyle | Chair of the IA Dormant Assets Technical Group