Q&As

What is the pensions impact of the Dormant Assets Scheme?

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Published on: 14 May 2021
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What is the Dormant Assets Scheme?

The Dormant Assets Scheme (the Scheme) is a scheme led by industry and backed by the government with the aim of reuniting people with their financial assets. Where this is not possible, this money goes towards social and environmental initiatives across the UK. Significantly, owners are able to reclaim what they would have been owed had their asset not been transferred into the Scheme at any time.

The legislative framework for the Scheme is set out in the Dormant Bank and Building Society Accounts Act 2008 and the Dormant Assets Act 2022 (DAA 2022).

For general information on the Scheme, see Practice Note: Regulated activities relating to dormant assets.

Expansion of the Scheme to cover personal pensions

The Scheme initially targeted bank and building society account balances.

Following the establishment of an Independent Commission on Dormant Assets (the Commission) in December 2015, the Commission recommended that the government build on the success of the original Scheme by including a wider range of dormant assets. In

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Asset definition
What does Asset mean?

(1) Any item of value; (2) The holdings of a fund, which may include stocks, shares, fixed-interest securities or cash; (3) The main types of investment available: bonds, equities, real estate, commodities etc.

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