Policy background The Dormant Assets Scheme
The Dormant Assets Scheme is led by industry and backed by the Government with the aim of reuniting people with their assets. Where this is not possible, the Scheme enables this money to support social and environmental purposes across the United Kingdom. In the first ten years of its operation, the Scheme has released over £800 million.
	The Scheme is underpinned by the following principles:
reunification first: participants' first priority is to reunite owners with their assets;
full restitution: dormant assets owners are able, at any point, to reclaim the amount that would have been due to them had a transfer into the Scheme not occurred; and
voluntary participation: industry participation in the Scheme is voluntary.
	The 2008 Act enables participating banks and building societies to voluntarily transfer funds from dormant accounts which cannot be reunited with their owners to an authorised reclaim fund. A transfer and agency agreement (TAA) is held between Reclaim Fund Ltd (RFL) and the bank or building society, and establishes a contractual framework between the two parties. The TAA outlines the operational arrangements for transfers and reclaims, and includes further details of participants' obligations to undertake reunification efforts prior to transferring eligible assets into the Scheme.
	RFL manages the funds, retaining enough to meet any future reclaims, and distributing the surplus to The National Lottery Community Fund (TNLCF). TNLCF in turn makes these funds available for social and environmental purposes across the United Kingdom, in accordance with the provisions of the 2008 Act, any relevant secondary legislation, and any directions given in each of the four nations. Dormant assets funding is used to fund projects, or aspects of projects, for which funds would be unlikely to be made available by a Government department of a devolved administration. This is known as the principle of additionality.
	The 2008 Act also provides for an alternative scheme, available to small banks and building societies. This enables firms with balance sheets below £7 billion to transfer dormant assets funds to RFL and nominate a local or aligned charity to receive the surplus. The alternative scheme is maintained but not expanded in the Act. To date, the alternative scheme has two participants.