The Dormant Assets Scheme (DAS) is the UK’s pot of unclaimed assets: shares, cash, savings accounts and other funds held by banks and building societies. It has recently undergone significant expansion, and now includes: insurance, pensions, securities, investment assets and client money.
The Financial Conduct Authority (FCA) regulates the DAS, funnelling unclaimed monies to good causes. Since 2011, the UK Dormant Assets Scheme has unlocked more than £745mn for social and environment initiatives, and the new expansion could unlock an extra £880mn for good causes.
With the expansion, there are new rules and guidance from the FCA to enable firms to participate in the scheme.
In this way, they are expanding the potential for wider asset class institutions to transfer money to Reclaim Fund Limited (RFL), the fund run by the UK Government to channel money to good causes. Most of this is achieved by funnelling the dormant assets through the National Lottery Community Fund.
Before that happens, attempts will have made to reunify any unclaimed assets with their rightful owners. If you think you might have unclaimed assets in the UK, you can check using this website.
The new rules came into force on August 2, 2024, allowing RFL to accept contributions from investment assets and client money sectors, beyond banks and building societies.
With the expansion in the scheme, funds will be allocated equally among four causes: youth services, financial management, social investment wholesalers, and community wealth funds. The devolved nations (Scotland, Wales, and Northern Ireland) are expected to receive £82 million over the same period.
Tracing and Reunification: The DAS requires participating firms to attempt to trace and reunite assets with their owners before classifying them as dormant. If you need this service as an individual or an institution, Grafton’s expertise in tracing individuals and unclaimed assets can help.
Compliance: Financial institutions can also leverage our services and ensure that their record keeping is compliant with the expanded Dormant Assets Scheme while potentially reducing the number of assets that become classified as dormant.
Call us today on 020 8875 1230 for a no obligation conversation on how we can help you with your dormant assets or lost money. We deal with individuals, solicitors and public sector clients, to help them trace lost assets or the beneficiaries of them.
