Millions in dormant funds have been unlocked for charities and social enterprises after the Financial Conduct Authority confirmed the final rules of the expanded dormant assets scheme.
The FCA said the second phase of the expansion will bring dormant investment assets and client money “in scope”.
The scheme has been led by the industry and backed by the government to “reunite people with their financial assets”.
The regulator explained “Where that is not possible, this money supports UK growth through good causes such as getting young people into work or offering affordable credit to families.”
Since 2011, the scheme has unlocked more than £745m for social and environment initiatives, from over £1.35bn in dormant bank and building society accounts.
The expansion of the scheme is estimated to potentially unlock a further £880m.
The initiative not only reunites people with their lost money but also “empowers local businesses to drive positive change across local communities”.
The Investment Association described the news as “an important milestone towards the joint aim of unlocking millions of pounds for good causes”.
It added: “We welcome the changes the regulator has made to its proposals, which will make participation a more viable proposition for investment firms, while protecting the ongoing right of investors to reclaim their assets at any time.
“Our Unclaimed Assets Portal, powered by Gretel, continues to support retail consumers who have become detached from their investments over time and is a key mechanism for people to find and reclaim these monies.
“In the meantime, it is right that the funding be put to good use by charities helping those in need up and down the country.”
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