The UK government has launched a 12-week public consultation on the future spend direction of the next tranche of dormant asset funding. The consultation seeks views on the existing English spend priorities of youth, financial inclusion and social investment together with the oppportunity to broaden the scope.
Dormant asset funding originates from the Dormant Asset Scheme operated by Reclaim Fund Ltd (RFL), the Scheme allows organisations with eligible assets to contribute dormant funds to support social impact. The Scheme ensures the original owners’ right to reclaim at any point in the future and RFL’s role is to retain sufficient funds to meet future reclaims and then to release the surplus to the Schemes appointed distributor.
Adrian Smith OBE, Chief Executive at RFL, commented:
‘The success of the Scheme to date is owed to the banks and building societies who have led the way and supported the Scheme for over 10 years. Participation across the wider financial services sector, and beyond, will ensure its success in the years to come. This is a great opportunity for companies already participating and interested in joining the Scheme to have a say as to where future distributions should be channelled. By having the opportunity to influence the future direction of dormant assets funding, we look forward to more organisations participating in the Scheme, and increasing the amount that could be used to enhance communities and enrich lives.‘
Following the passing of new legislation earlier this year, the Scheme is set to expand from the current banking and building society sector to insurance, pensions, investments and publicly listed companies.
Deadline for responses is 9th October 2022. Please take the time to provide your response to the consultation here.