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The Act

The Dormant Assets Scheme is the outcome of the Dormant Bank and Building Society Accounts Act 2008 and Dormant Assets Act 2022.

Following the Dormant Bank and Building Society Accounts Act 2008, the Dormant Assets Act 2022 (the Act) expanded the assets eligible for inclusion in the Scheme from dormant banks and building society accounts to dormant assets from insurance, pensions, investments, wealth management and publicly listed companies (securities). In addition, the Act makes provision for a public consultation on the future spend direction of the English proportion of dormant asset funding. This is due to be held in Summer 2022.

Dormant Assets Act 2022

dormant assets act 2022

Dormant Bank and Building Society Accounts Act 2008

dormant bank and building society accounts act 2008

The Act may be subject to amendment by government from time to time. The most up to date versions are available here: legislation.gov.uk

The Dormant Assets Scheme is underpinned by its three core principles. Consumer protection is at the heart of the scheme: asset owners should always be able to reclaim the amount that would be due to them had a transfer into the scheme not occurred.

Background to expansion

In 2017, the Independent Commission on Dormant Assets recommended that a wider range of assets be included in the Dormant Assets Scheme. Following the Government’s response in 2018 to the Commissions’s report, four senior industry champions were asked to lead the development of recommendations for an expanded scheme.

Their 2019 report set out an industry blueprint for expansion which concluded that primary legislation would be needed to expand the scheme.

commission on dormant assets

dormant assets scheme a blueprint for expansion

In February 2020, the government launched a public consultation for wider views on the development plans for scheme expansion. The consultation outlined government’s proposals on how assets from three additional sectors, namely insurance and pensions, investments and wealth management and securities could be included.

In January 2021, the government published its response to the public consultation and during the State Opening of Parliament, May 2021, the Queen’s speech included the Dormant Assets Bill which would form the legislation for scheme expansion. Following a successful legislative process with cross-party support, the Dormant Assets Act 2022 was granted Royal Assent in February 2022.

Find out more about the Schemes:

The Scheme 
Facilitating participants from the banks and building societies, insurance, pensions, investment, wealth management sectors and public limited companies to transfer money from their eligible dormant assets to RFL. Surplus funds not required to cover future reclaims is then used to provide funding to charities and social enterprises across the UK.

The Alternative Scheme 
Enables building societies and banks with balance sheet values below £7bn to use qualifying dormant accounts to support their chosen charities.

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