Investment & Wealth Management
The Dormant Assets Act 2022 (the Act) expands the scope of the Dormant Assets Scheme to include investment and client money assets. Organisations that are headquartered in, or have an entity in the UK, and have the required regulatory permission, are eligible to join the Scheme.
The Scheme enables participating organisations (‘participants’) to transfer monies from eligible dormant assets that cannot be reunited with their owners to RFL. RFL protects the right of asset holders to reclaim the value of their assets at any time in the future. RFL invests funds it receives from participants to cover future reclaims and transfers the surplus to The National Lottery Community Fund which distributes these amounts to good causes across the UK.
Investment and wealth managers are increasingly placing environmental, social and governance (ESG) priorities at the heart of their strategies. Participating in the Dormant Assets Scheme benefits participants, their customers and the wider communities in which they operate:
- Participants harness the value of assets that cannot be reunited with their owners for social and community causes
- Customers retain the right to reclaim the value of their assets at any point in the future
- Communities benefits from additional funding to support vulnerable individuals and disadvantaged groups
Contact us at email@example.com to discuss how your organisation could participate in the Dormant Assets Scheme.
Assets in scope
Eligible assets in the investment and wealth management sector include collective scheme investments i.e. a share in an authorised open-ended investment company (OEIC), a unit in an authorised unit trust scheme, or a unit in an authorised contractual scheme and client money assets.
The eligible amounts are the converted cash proceeds of a collective scheme investment where, following attempts to trace and reunify the asset with its owner, there has been no contact for at least 12 years. If the amount is a share, unit conversion or is client money, where there has been no contact with the owner for 6 years. Common examples of eligible amounts include:
- Redemption proceeds
- Distributions of income
- Cash held in client money accounts
- Orphan monies
How the Scheme works:
The Scheme Handbook
Industry Champion and General Counsel, Jupiter Asset Management
It is rare that new opportunities emerge for our industry to demonstrate both good stewardship towards our clients whilst making a direct and tangible contribution to financially and socially disadvantaged communities. The expansion of the Dormant Assets Scheme is one such opportunity, and the earlier that companies choose to participate, the quicker that funds can be used to enrich lives and enhance communities."
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