aviva Became the first participant in an expanded version of a scheme that enables dormant assets to be used to support good causes.
The insurance and pensions giant joins more than 40 banks and building societies in the UK that already participate in the scheme, paving the way for other companies in the insurance and pensions sector to join.
A dormant asset is a financial product that the owner, executor or beneficiary has not accessed for an extended period of time (15 years in the case of bank accounts) and where financial institutions attempt to trace and reconcile the owner with their account or other financial product. has failed
Under the scheme, dormant assets remain the property of their owners and the scheme must match the amount that the scheme would have paid to the owner had the cash proceeds of their assets not been transferred to the scheme.
This means that owners can recover any money owed to them at any time
The Dormant Assets Act 2022 expanded the scope of Dormant Asset Schemes to include certain pension and insurance assets.
The scheme is voluntary and requires all participants to demonstrate that they are making extensive efforts to trace the original owners of dormant assets, so that people can be reunited with their funds.
Since the scheme was first established for banks and building societies in 2011, more than £1.6 billion has been transferred to the Reclaim Fund Limited (RFL).
Apart from insurance and pensions, the scheme will open for assets in the investment and asset management sectors in the coming months.
Kirsty Cooper, Group General Counsel and Company Secretary, Aviva, said: “We have been actively working with RFL and the wider dormant asset community for several years to expand and adapt the hugely successful Dormant Asset Scheme to the insurance and pensions sector. long-term product.”
Hanna Gurga, Director General Dr Association of British Insurers (ABI) said: “This expansion unlocks the potential to tap into our sector’s millions of pounds of unclaimed assets, enabling customers to recover their money indefinitely.
“We are delighted to work with the year GovtRecovery Fund Ltd. and the industry has been fruitful and to see that the first transfer has been successfully completed.
“We hope that other insurers and pension providers will follow suit and have launched a new participation guide for those interested in joining the scheme.”
Dormant wealth funding is distributed across the four UK counties through the National Lottery Community Fund.
Minister for Civil Society and Youth, Stuart Andrew, said: “Opening up the Dormant Assets Scheme to the new sector will provide an additional pipeline of vital funding to support disadvantaged young people, support those in financial difficulty and boost social investment.”
Economic Secretary Dr treasury, Andrew Griffith Said: “This is a significant moment for the latent wealth scheme and an important reminder of the important role the financial services sector plays in driving economic growth and supporting communities and citizens across the UK.”
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