The Co-operative Financial Services to administer Central Reclaim Fund

December 09, 2009

As announced in the Pre-Budget Report today The Co-operative Financial Services (CFS) has agreed to support the Government and industry efforts to take forward the Dormant Accounts Scheme, by preparing a plan for the establishment of the Central Reclaim Fund. CFS intends to submit an application to the FSA for authorisation to establish and administrate the Central Reclaim Fund, subject to work going ahead as planned.

Neville Richardson CFS Chief Executive said “We are delighted to offer our support both to the Government and the industry. The Central Reclaim Fund will form an integral part of the introduction of the unclaimed asset scheme. It will ensure there will be money available to enable customers to reclaim their account monies at any time. The fund will also ensure that any surplus will be passed to the Big Lottery Fund for onward distribution to good causes within the community”.

For further information please contact

Duncan Bowker / Catherine Laycock
The Co-operative Financial Services Press Office
Tel: 0161 903 3819 / 0161 903 3833
Email: duncan.bowker@cfs.coop / catherine.laycock@cfs.coop

Notes to Editors:

  • The Government’s Dormant Accounts and Building Society Act received Royal Assent in November 2008. The Act enables banks and building societies to transfer money held in dormant accounts for reinvestment in the community and will provide account holders with a right to repayment.
  • Once in place, the fund will operate independently from the BBA, BSA and the Government. Banks and building societies estimate that there is about £400 million in dormant accounts, which will be eligible for transfer to the Reclaim Fund.
  • It is anticipated that the plan will identify a ‘road map’ for FSA authorisation and implementation of the Reclaim Fund by Summer 2010. The first transfers from bank and building societies will follow this.