On 14 February 2025, the Department for Culture, Media and Sport published a policy paper on the Dormant Assets Parliamentary Review.
Background
The principle aim of the Dormant Asset Scheme (DAS) is to reunite people with their financial assets. However, where this isn't possible, the dormant money is paid to an authorised reclaim fund which then puts this money towards social and environmental initiatives across the UK.
As we reported at the time, the Dormant Assets Act (the Act) came into force on 6 June 2022 and expanded the DAS to include the insurance and pensions, investment and wealth management, and securities sectors. See our articles here and here for further information.
What's New
Section 30 of the Act requires the Secretary of State to carry out periodic reviews of the DAS and set out its findings in a report laid in Parliament. This is the first of these reviews, covering the period from 24 February 2022 to 12 February 2025. The key findings of the report include the following:
The DAS continues to deliver operational value to industry participants;
The DAS continues to prioritise consumer protection, as evidenced by participating firms' significant efforts to reunite customers with their assets, supported by comprehensive industry guidance on tracing, verification, and reunification strategies; and
Progress to fully operationalise the DAS has been slower than expected, notably due to the complex nature of the assets within these new sectors and additional regulatory and technical hurdles. These hurdles have taken time to overcome, particularly in the investment and wealth management sector. However, with the FCA's final rules and guidance published in August 2024, the DAS will soon be ready to accept dormant investment assets and client money.
Next Steps
The next report is required to be laid in Parliament by February 2030.
