Office of the Leader of the House of Commons

Dormant Bank and Building Society Accounts Bill

Key Benefits The Bill would enable unclaimed assets to be invested for community purposes, whilst ensuring the rights of owners to be reunited with their assets are protected. Funds reinvested in the Community: money not needed to manage customer reclaim would be reinvested in communities via the BIG lottery fund. In England initial spending would be on youth services, financial capability and inclusion and, resources permitting, a social investment 'wholesaler'. Devolved Administrations would determine their own priorities. Protect consumers: affected consumers would have the right to claim their money back at any time and have equivalent protection to that currently held. Better regulation: legislation would be enabling not compulsory for financial institutions. Define unclaimed assets as broadly covering all bank and building society accounts where there has been no customer-initiated activity for 15 years; Permit banks to extinguish their existing liabilities to dormant account customers on condition that assets are transferred into the scheme. This will enable banks to voluntarily transfer monies without impacting on their profit and loss accounts; Allow for a reclaim fund to be set up to manage customer reclaim across the industry, on which the liability to repay customers will be placed, and allow it to be authorised by the Financial Services Authority; Provide the customer with the right to reclaim their assets; and Allow for assets to be distributed to the Community, with a focus in England on youth services, financial capability and inclusion (as set out in PBR 2005 and Budget 2006) and (if funds permit) social investment. The devolved administrations will decide their own spending priorities.

Bill Text

Explanatory Notes

Regulatory Impact assessment

Theme
Economic Stability

The Bill applies to the United Kingdom. There are a mixture of reserved and devolved functions. The Government will work closely with the Devolved Administrations on the responsibilities that they have in this area.

Related Documents

Existing Legislation

Charities Act 1993 for dormant charity accounts.

Comments

If you have any comments on the Bill you can email them to:

unclaimedassets@hm-treasury.gov.uk