Dormant Assets Scheme - DCMS publishes consultation on funding - 16 July 2022
The Department for Digital, Culture, Media & Sport (DCMS) has published a consultation seeking views on what social and environmental causes should benefit from more than £700 million of dormant assets funding in England. Currently, dormant assets funding in England is required to be spent on three causes: youth, financial inclusion and social investment. The Government is now reviewing whether these remain the right causes to which funding from dormant assets should be allocated.
The Dormant Assets Scheme enables unclaimed funds to be reinvested for the benefit of social or environmental purposes, while protecting the rights of the individual customer. The Scheme was recently expanded from bank accounts to include the insurance and pensions, investment and wealth management, and securities sectors, through The Dormant Assets Act 2022, published on 1 March 2022.
Consultation on the English portion of dormant assets funding
The Financial Services Act 2021 (Prudential Regulation of Credit Institutions and Investment Firms) (Consequential Amendments and Miscellaneous Provisions) Regulations 2022 - Statutory instrument and explanatory memorandum published - 19 July 2022
The Financial Services Act 2021 (Prudential Regulation of Credit Institutions and Investment Firms) (Consequential Amendments and Miscellaneous Provisions) Regulations 2022 (the Regulations) have been published, together with an explanatory memorandum.
The Regulations make consequential amendments to the Financial Services Act 2021, following the introduction of the Investment Firms Prudential Regime (IFPR) and Basel III standards on 1 January 2022. These include:
- repealing the Banking Act 2009 (Exclusion of Investment Firms of a Specified Description) Order 2014;
- making transitional provision in respect of risk retention requirements for certain securitisations following the implementation of the IFPR. These requirements relate to the retention of a material net economic interest in a securitisation by the originator, sponsor or original lender to better align their interests with those of investors;
- making amendments to ensure that short-term liabilities owed to both PRA- and FCA-regulated investment firms with permission to underwrite or deal on own account will continue to be exempt from bail-in; and
- addressing further deficiencies arising from the UK’s withdrawal from the EU.
The Regulations will come into force on 17 August 2022.
The Financial Services Act 2021 (Prudential Regulation of Credit Institutions and Investment Firms) (Consequential Amendments and Miscellaneous Provisions) Regulations 2022