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- $1.12 billion boost: Expanded scheme to unlock more funds for social and environmental projects.
- Support for tight finances: New Labour government benefits from additional funds amid fiscal constraints.
- Consumer protection: Ensures consumers can reclaim dormant assets easily.
Britain’s financial watchdog has expanded the range of “dormant” assets, potentially unlocking an extra 880 million pounds ($1.12 billion) to fund social and environmental projects. This expansion aims to support the new Labour government’s efforts amid tight public finances.
Since 2011, the UK Dormant Assets Scheme (DAS) has unlocked over 745 million pounds ($948.68 million) for social and environmental initiatives from more than 1.35 billion pounds in dormant bank and building society accounts.
The FCA announced that the scheme now includes dormant investment assets and money held on behalf of clients. “Our proposals should result in an increase of funds being released to support good causes from investment assets and client money assets that are transferred to the DAS,” the FCA said in its final policy statement.
The expansion of DAS is expected to make around 240 million pounds available for social and environmental projects. “The Government has estimated that around 240 million pounds in total will be made available from the expansion of the DAS to fund social and environmental initiatives,” the FCA noted.
Dormant cash refers to money in bank and building society accounts untouched for at least 15 years where tracing the owner has proved unsuccessful. Financial firms can voluntarily transfer this cash to an authorized reclaim fund for distribution. However, a traced owner can reclaim their money.
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This initiative, led by industry and backed by the government, not only reunites people with their lost money but also supports UK growth through good causes like youth employment and affordable credit for families. The FCA’s policy statement ensures any technical changes in the Handbook facilitate full participation in the scheme and easy access to reclaims for consumers.
In conclusion, the Dormant Assets Scheme expansion is set to significantly boost funding for crucial social and environmental projects, aiding a cash-strapped economy while ensuring consumer protection.
View Full Policy Statement