We are consulting on changes to the FCA handbook to reflect the expansion of the Dormant Assets Scheme.
Why we are consulting
The Dormant Assets Scheme (DAS) allows banks and building societies to pay dormant monies to an authorised reclaim fund which then puts this money towards funding good causes. We have been working closely with HM Government and Reclaim Fund Limited (RFL) to support expansion of the scheme. Our final rules on facilitating the first phase of expansion (for insurance, pensions and securities assets) were published in Handbook Notice 101 and are effective from 1 August 2022.
We agreed with the Government and RFL that expansion will be phased. This is to reflect the differences between the different asset classes and their resolution processes. We are now consulting on proposed amendments to our rules and guidance to enable investment funds and client money to the expanded scheme.
Who this applies to
- Reclaim Fund Limited (RFL).
- Managers and depositaries of authorised collective. investment schemes, and
- Firms holding client money.
Other stakeholders interested in the treatment of dormant assets, such as insolvency practitioners, professional advisers, trade associations, consumers and consumer organisations may want to read the consultation.
In 2016, the Government established the Independent Commission on Dormant Assets to examine what new assets could be brought into an expanded Dormant Asset Scheme. The Commission identified dormant assets in a range of financial services sectors that could be included in an expanded DAS.
In February 2022, the Dormant Assets Act 2022 received Royal Assent. The Act amends the Dormant Bank and Building Society Accounts Act 2008 to expand the scope of dormant assets that can be contributed to the DAS.
The new assets in scope of the expanded scheme fall under five asset classes:
- investment assets
- client money
Depending on the feedback received to this consultation we hope to finalise our proposals in Q4 2023.