Government publishes its strategy for the Dormant Assets Scheme

On 02 June 2025, the Department for Culture, Media and Sport (DCMS) published a policy paper on the UK Government's strategy for the Dormant Assets Scheme (DAS). The paper sets out the Government's strategic priorities and related programmes of work for the next four years in relation to the DAS.

What's the background to the strategy?

The DAS is a Government-backed, industry-led initiative which was launched in 2011 with the goal of reuniting people with their financial assets.

Where this isn't possible, the DAS enables businesses to voluntarily transfer dormant assets to Reclaim Fund Ltd (RFL), an HMT arms-length body and the DAS administrator, for distribution to fund social and environmental initiatives across the UK, whilst always maintaining the owners' rights to their property.

To date, the DAS has unlocked £1 billion for good causes.

Since its launch, the DAS has been expanded from bank and building society accounts to include dormant assets from the insurance and pensions, investment and wealth management and securities sectors. For more information, see our articles here and here.

What does the strategy include?

The Government's strategy centres around the following three long-term objectives:

(1) Achieving long-term systems change through innovative programmes

The next £440 million tranche of dormant assets funding will be allocated as follows between the four named causes of the DAS in England:

• £132.5 million for the provision of services, facilities or opportunities to meet the needs of young people;

• £132.5 million for the development of individuals' ability to manage their finances or the improvement of access to personal financial services;

• £87.5 million for social investment wholesalers (£12.5 million will reach organisations that support improved youth outcomes); and

• £87.5 million for community wealth funds.

(2) Protecting the integrity of the scheme and its funding

The DAS relies on robust governance to uphold its integrity and reputation. To ensure governance arrangements evolve effectively to meet the needs of the expanded scheme and to protect the integrity of the DAS and its funding, the Government intends to:

• Continue to adhere to the additionality principle to improve transparency of how dormant asset funding is used in England, and ensure that all Ministerial decisions are underpinned by additionality considerations

• Enhance the evidence base of the scheme's performance and impact to inform decision-making and foster meaningful change; and

• Improve accountability across the system to ensure effective risk management, preventing gaps in responsibility or overstepping on remit.

(3) Becoming the best practice standard mechanism to deal with dormancy

The Government's long-term goal is to make the scheme the preferred option for firms dealing with dormant assets. To achieve this, the Government intends to:

• Continue to work with RFL, HMT, and industry stakeholders to operationalise the current expansion of the scheme

• Raise awareness in existing sectors to encourage participation; and

• Explore opportunities for further expansion of the DAS to include additional sectors and/or assets once the current phase of expansion is fully operational.

What's the current status of the expansion of the scheme to the investment sector?

The FCA introduced final rules in August 2024, but it was necessary for RFL to first put in place contracting arrangements that investment managers could use to make transfers to the DAS.

The terms and conditions agreement for the transfer of "assets of non-fluctuating value" (i.e., cash balances) has now been agreed following industry negotiation with the RFL, meaning firms from the investment sector can choose to transfer such dormant assets into the scheme.

The equivalent agreement for "assets of a fluctuating value" (i.e., monies still invested in funds and subject to market movement) is under negotiation and expected later in 2025.

The DAS does not apply to unregulated collective investment schemes such as hedge funds or other AIFs.