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<p>The UK Dormant Assets Scheme is led by the financial services industry and initiatives
across the UK whilst protecting the original asset owner’s right to reclaim. Assets
that are classed as dormant always remain the property of their owners, who can reclaim
money owed to them in full at any time. Dormant account funds are transferred to an
authorised reclaim fund, Reclaim Fund Ltd (RFL) which retains enough funds to meet
any future reclaims, and then distributes the surplus funding onwards to The National
Lottery Community Fund to be used for public benefit.</p><p> </p><p>In April 2021,
RFL became a Treasury-owned arm’s length body, but it remains financially and operationally
separate from HM Treasury. Dormant account funds do not ever enter the Treasury and
the Government does not have access to dormant monies that are transferred into the
Dormant Assets Scheme. RFL received £127 million of dormant balance transfers in 2021,
taking total amounts received by RFL since it commenced operations in 2011 to over
£1.5 billion.</p><p> </p><p>The Dormant Assets Act 2022 delivers on the Government's
commitment to expand the Scheme, potentially unlocking a further £880 million over
the coming years. It enables a wider range of dormant assets to be transferred into
the Scheme from the insurance and pensions; investment and wealth management (including
orphan monies attributable to collective scheme investments); and securities sectors.</p><p>
</p><p>The decision on what new assets are included in the future will depend on a
number of factors, including: identifying asset classes with high instances of dormancy;
setting the dormancy definitions for such assets, and how restitution would be achieved.
It would also be important to consider whether other mechanisms for dealing with dormancy
already exist. Any further expansion will require the same close collaboration between
Government, an authorised reclaim fund, and industry that has supported this phase
of expansion.</p><p> </p>
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