Dormant assets scheme could be expanded following government report

A scheme to reallocate dormant assets to charitable causes could be extended to the investment and wealth management sector following the publication of a government report.

An independent report commissioned by the government found that extending the scheme to other financial services, also including the insurance and pensions sector, could "significantly expand the money available to good causes".

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Under the current rules only money held in banks and building society accounts that have been untouched for 15 or more years is transferred to the Reclaim Fund Limited, which distributes unreclaimed assets to charitable projects in the UK.

“The investment and wealth management sector believes that the adoption of common tracing principles will significantly improve firm’s ability to reconnect with gone-away customers,” the report said.

“For those cases where reunification proves not to be possible, the investment and wealth management working group fully supports the release of dormant assets for use in support of good causes.”

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A total of £600m has been transferred to charity since the introduction of the scheme, which is voluntary but includes all major UK banks.

The report, which was written by Aviva group general counsel Kirsty Cooper, Lloyds Banking Group consumer banking managing director Simon Kenyon, former M&G chief executive William Nott, and Tesco group secretary Robert Welch, said the expanded scheme would remain voluntary.