In 2016, the government established the Independent Commission on Dormant Assets. The Commission was asked to report to government as to which additional dormant assets could be brought into an expanded dormant assets scheme. The Dormant Bank and Building Societies Accounts Act (2008) means that at present, only assets from the banking sector can be transferred into the scheme.
The Commission published its report in March 2017. The report was prepared in consultation with financial sector firms, Reclaim Fund Ltd, trade associations and regulatory bodies. It found that there were potentially significant values of dormant assets in a range of financial services sectors which could be included in an expanded dormant assets scheme.
This is the government response to the Commission on Dormant Assets’ report. It confirms the government’s commitment to:
• support industry to expand the dormant assets scheme to include a wider range of financial assets, potentially including the insurance and pensions, investment and wealth management, and securities sectors
• appoint senior industry champions to drive forward this industry-led initiative, and to report to Government on the details of implementation
• retain the main principles of the scheme, including that customers should be able to reclaim dormant money at any time and that firms’ participation in the scheme should be voluntary
• ensure that, where appropriate, certain assets remain outside the scope of the scheme
• engage with Co-operative Banking Group about the appropriate future governance structure for Reclaim Fund Ltd
This government response has been published jointly by the Department for Digital, Culture, Media & Sport and HM Treasury.
The full report is available to view on the GOV.UK website.