Co-operative Financial Services (CFS) has announced that its application to establish a central Reclaim Fund for dormant account monies on behalf of the industry has been approved by the Financial Services Authority (FSA).
The new Fund will be known as Reclaim Fund Ltd, and forms a wholly owned subsidiary of CFS. It will operate independently with an appointed Board and Executive. The Fund will be run as a non-profit making organisation, and there will be no financial benefits to Co-operative Financial Services administering the Fund. The accounts will be reported annually, with an additional report into Parliament every three years.
Neville Richardson, Chief Executive of Co-operative Financial Services comments: ‘As a trusted financial organisation, we have been delighted to step forward and offer our support to the Government and the industry in establishing Reclaim Fund. We do recognise the need for the fund and the benefits that it offers both the industry and wider community.’
Tracing lost money
The process of tracing lost money and assets will basically still be the same. Customers will still be able reclaim their dormant account money from their bank or building society at any time. If you’ve forgotten about an account and can’t recall where it is held, you can visit www.mylostaccount.org.uk which provides a free service to help trace lost accounts.
The Which? guide on finding unclaimed assets will answer all your questions if you’ve some money to trace. Our guide covers lost or dormant bank and savings accounts, pensions and premium bonds, shares and dividends and life insurance policies.
Once you’ve been reunited with your money, make sure that you place it in a market-leading savings account or cash Isa.
Good causes will benefit
The Reclaim Fund will then transfer any money considered surplus to that needed for customer reunification to the Big Lottery Fund, for onwards distribution to good causes, including for example the Big Society Bank in England.
Based on the current industry view that the amount of money that the Reclaim Fund will receive is around £400 million, it is estimated that the first distribution to Big Lottery Fund will be in the region of £60-100 million and will be transferred in phases over the next twelve months.
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