# Renamed Unclaimed Assets fund to be voluntary

- Link: https://fundraising.co.uk/2007/11/08/renamed-unclaimed-assets-fund-be-voluntary/
- Published: 2007-11-08T00:00:00+00:00
- Author: Howard Lake

The Queen’s Speech this week included the “Dormant Bank and Building Society Accounts
Bill”, which was previously called the Unclaimed Assets Bill. However, it will not
be compulsory for UK banks to take part in it.
The Queen’s Speech stated that “legislation
will be introduced to enable unclaimed money in dormant bank accounts to be used
for youth facilities, financial inclusion and social investment.” A Treasury briefing
explained that the purpose of the Bill was to “enable unclaimed assets to be invested
for community purposes, whilst ensuring the rights of owners to be reunited with
their assets are protected.”

 

 

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The bill defines unclaimed assets as “covering all bank and building society accounts
where there has been no customer-initiated activity for 15 years.”

 

 

The Community Foundation Network (CFN) was not pleased with the bill, especially
the voluntary element for banks. CFN Chief Executive, Stephen Hammersley said: “
Many people had hoped this legislation would help address the funding crisis now
looming for small community groups, many of which are amongst the most effective
in getting money to the most disadvantaged.

 

 

“In fact it now looks as if there will be no compulsion on banks and building societies
to join the scheme. Government has pulled the plug on a huge swathe of local community
funding. This bill was supposed to refill the bath but with the legislation framed
as it seems, the inward flow of funds could be little more than a dripping tap.”

 

 

He called on the Big Lottery Fund, which the bill states will distribute the funds,

 

to ensure that what money is raised gets to grassroots organisations, “rather than
going to the 10% mega-charities that currently absorb nearly 90% of all charitable
income.”

 

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