UNCLAIMED ASSETS BILL
The purpose of the bill is to:
- enable the banking industry to transfer unclaimed assets in the banking system so that they may be reinvested in society, whilst ensuring the rights of owners to be reunited with their assets are protected.
- Legislation is needed to meet the 2005 election Manifesto commitment, which aimed to see banks reunite unclaimed assets with their owners or to channel them back into the community.
The main benefits of the bill are:
- Funds for the Third Sector: allows money that would not otherwise be available to be distributed in the community.
- Protect ion for consumers: affected consumers will have the right to claim their money back at any time and have equivalent protection to that currently held.
- Better regulation: Legislation will be enabling not compulsory for financial institutions.
The main elements of the bill are:
- 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.
- 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.
The Bill would apply 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 in this area is:
- Charities Act 1993 for dormant charity accounts.
- Bona Vacanti
Comments:
If you have any comments on the draft programme or individual bill being proposed, you can email them to:
legislation@commonsleader.x.gsi.gov.uk
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