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3.2.5 Social Fund from Dormant Assets

The UK Dormant Assets Scheme (DAS) is a collaborative initiative between the UK government
and private financial institutions, aimed at using dormant assets to support social and
environmental causes. Dormant assets refer to financial holdings for which the institution is
unable to contact the rightful owner and which have remained inactive for an extended period.
These assets may include bank and building society accounts, long-term insurance policies,
pension funds, investment assets, client money accounts, and securities or other financial
instruments. In cases where the asset holders have not engaged in any transactions for many
years, and all reasonable attempts to trace or contact them have failed, these assets are deemed

dormant and may be redirected for public benefit through the DAS.

In 2008, the UK government enacted the Dormant Bank and Building Society Accounts Act,
granting participating banks and building societies (a type of financial institution in the UK) the
legal authority to transfer dormant accounts or assets to a fund known as Reclaim Fund Ltd (RFL).
RFL is a non-departmental public body (NDPB) under the supervision of HM Treasury.

Dormant accounts or assets are defined as those in which the owner has not made any related
transactions for 15 years, and the financial institution has been unable to establish contact with

the owner. The law prioritizes consumer protection, meaning that banks and institutions must
make every reasonable effort to reach the asset owner before transferring the funds.
Furthermore, owners retain the right to reclaim the full amount of their assets from RFL at any
time. Participation in the scheme by financial institutions is entirely voluntary, both in terms of
whether they choose to transfer dormant assets and the amount they decide to contribute.

RFL is responsible for managing the transferred funds. It allocates a portion to the National Lottery
Community Fund (TNLCF), which distributes the money to social and environmental projects,
while reserving the remaining portion to cover potential repayments to asset claimants. Currently,

approximately 60% of the fund is distributed for social and environmental purposes, while 40% is
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retained to ensure that RFL can fulfill claims from rightful owners. With regard to funds
designated for social and environmental benefit, Reclaim Fund Ltd (RFL) transfers the money to
the National Lottery Community Fund (TNLCF). TNLCF is responsible for distributing the funds
across England, Scotland, Wales, and Northern Ireland according to proportions outlined in the
Distribution of Dormant Account Money (Apportionment) Order 2011.

For England, the funds must be used in accordance with the purposes defined under the Dormant
Bank and Building Society Accounts Act 2008. For the devolved nations, each region is authorized

48 GOV.UK, Factsheet Two: Policy context and background,
Source:https://www.gov.uk/government/publications/dormant-assets-bill-factsheets/factsheet-two-policy-context-
and-background, 24 November, 2024.
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