The UK government has confirmed it is planning to expand its dormant bank and building society accounts scheme to cover insurance, investment and wealth management products.
International Adviser reported in April 2019 that plans were underway to revamp the scheme, which sees UK assets that have lain dormant for more than 15 years funnelled towards good causes.
The government has now launched a consultation to gather views from potential participants, consumer groups, regulators, and interested individuals.
It follows two industry-led reports which made a series of recommendations on broadening the current scheme beyond banks and building societies.
The public consultation closes at 23:59 on 16 April 2020.
Strategy
Since its launch in 2011, over £1.2bn from dormant bank and building society accounts has been transferred to a Financial Conduct Authority- regulated authorised reclaim fund, with over £600m ($780m, €717m) redistributed to good causes.
These include helping young people on the path to employment, encouraging investment in products that benefit social causes and tackling financial exclusion.
Consumer protection will remain at the heart of any expanded scheme, with the priority continuing to be reuniting customers with their money.
Only where this is not possible; following rigorous, unsuccessful efforts to locate the asset owner, will funds be released to support social investment and youth and financial inclusion initiatives.
If, at a later date, a consumer discovers that they had a dormant account and their funds have been transferred into the scheme, they will also always be able reclaim the full amount transferred.
Unlock funds
John Glen, economic secretary to the Treasury, said: “Through this scheme we have channelled hundreds of millions of pounds into causes to help those most in need.
“[The] announcement builds on vital work by industry to broaden the scheme.
“By expanding it beyond bank accounts to include assets like insurance products, we will be able to unlock even more funds for worthy causes up and down the country.”
