Aviva and the HM Treasury-owned operator of the Dormant Assets Scheme, Reclaim Fund Ltd (RFL), have successfully completed the first transfer of dormant assets from the insurance and pensions sector to the government-backed scheme.

The news was highlighted as a "milestone" for the Dormant Assets Scheme, as Aviva join over 40 UK banks and building societies that currently participate in the initiative, which allows dormant assets to be used to support social and environmental causes, while ensuring customers can be reunited with their assets at any point.

Aviva became the first participant in the expanded scheme, after working with government, industry and RFL for over six years to adapt the scheme model to new sectors and additional financial assets, culminating in the Dormant Assets Act 2022.

Its addition to the scheme is expected to lead the way for other companies in the insurance and pension sector, with the Association Of British Insurers (ABI) also sharing new resources and guidance to help companies in their preparations for joining the Dormant Assets Scheme.

Commenting on the news, Aviva group general counsel and company secretary, Kirsty Cooper, stated: “We have been working proactively with RFL and the wider dormant assets community for a number of years to expand the hugely successful Dormant Assets Scheme to the insurance and pensions sector and adapt it for longer-term products.

“It is great to see the culmination of a lot of hard work reaching fruition and it is such a privilege to be the first participant in our sector.

"We have been involved with the Dormant Assets Scheme since 2016 and hope that Aviva’s participation will encourage other companies to take part, with the dual purpose of reuniting customers with their assets while also ensuring dormant assets can have a positive impact on our society.”

Economic Secretary to the Treasury, Andrew Griffith, also highlighted the news as "a significant moment" for the Dormant Assets Scheme, as well as "an important reminder of the financial services sector's vital role in driving economic growth and supporting communities and citizens across the UK".

“I look forward to working with Aviva and other industry participants as the scheme opens up to additional asset classes throughout the year, unlocking millions of pounds for good causes across the country," he stated.

Adding to this, ABI director general, Hannah Gurga, said: “This expansion unleashes our sector’s potential to use the millions of pounds it has in unclaimed assets to support good causes, with customers being able to reclaim their money indefinitely.

“We’re delighted that years of work with government, Reclaim Fund Ltd and industry has come to fruition and to see the first transfer successfully completed.

"We hope that other insurers and pension providers will follow and have launched a new participation guide for those who are interested in joining the scheme.”

Reclaim Fund and Dormant Assets Expansion Board chair, Jane Hanson, also highlighted the news as a "prime example of how industry and government can work together and innovate responsibly to deliver demonstrable social value".

“I am thrilled that all the work undertaken by industry, government and RFL has come to fruition with the expansion of the Dormant Assets Scheme," she added.

"At a time when the rising cost of living continues to afflict communities across the UK, participating in the Dormant Assets Scheme has never been more important.”

Beyond insurance and pensions, the expanded scheme is expected to open to assets in the investments and wealth management sector, along with securities or shares in UK plcs, in the "coming months".

The dormant assets funding is distributed through the National Lottery Community Fund across the four nations of the UK in line with policy direction from the government and devolved administrations.

In England, dormant assets funding is used to support financial inclusion, youth and social investment through four dormant assets spend organisations: Big Society Capital; Access – the Foundation for Social Investment, Fair4All Finance and Youth Futures Foundation.

Share Story: