On 22 May 2023, the FCA published Consultation Paper CP23/12: Expansion of the Dormant Assets Scheme (DAS) – second phase.
Introduction
The DAS was initially set up to allow banks and building societies to pay dormant monies to an authorised reclaim fund, which would then put this money towards funding good causes.
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 clauses:
- Insurance.
- Pensions.
- Securities.
- Investment assets.
- Client money.
The FCA has been working closely with HM Government and Reclaim Fund Limited to expand the DAS. In August 2022, the FCA made changes to its Handbook, covering insurance, pensions and securities, in order to facilitate phase 1 expansion.
CP23/12
In CP23/12, the FCA is consulting on the second phase of the DAS to make amendments to its rules and guidance in order to enable dormant investment assets and client money to be available to the scheme.
The FCA is proposing some technical changes in the Handbook to facilitate full expansion of the DAS in the remaining asset clauses. The FCA’s intention is to ensure any Handbook changes allow firms to participate in the DAS and consumers are able to access reclaims.
Next steps
The deadline for feedback to CP23/12 is 10 July 2023.
Depending on the feedback received, the FCA hopes to finalise its proposals in Q4 2023.
