TISA urges use of dormant assets to support long-term projects
In its response to the Dormant Assets Commission call for evidence TISA, the investments and savings association, has emphasised the need to trace the rightful owner of unclaimed assets first and, where this is not possible, to use the money to fund infrastructure projects as well as supporting charitable causes.
TISA, in conjunction with the British Standards Institute, published a set of good practice standards in 2014 to help firms deal with the problem of losing contact with their customers and the resulting unclaimed assets.
Adopting these standards would allow firms to develop a policy on both the processes they have in place to trace dormant or gone away clients, and the treatment of any unclaimed assets or cash in line with the Commission’s final recommendations.
Carol Knight, TISA Chief Operations Officer said:
“We believe it to be critical that sufficient emphasis is placed on reuniting unclaimed assets with the rightful owner. One of the causes is out of date or incomplete customer information, that’s why our recommendation to the Commission is to address this issue first. The standards we published with the BSI could provide the ideal framework to do this.
“Inevitably there will be cases where it is impossible to trace the rightful owner. We therefore support the concept of a dormant assets scheme. However, we should not lose sight of the benefits of long-term saving on Britain’s economy over short-term consumption. We are therefore urging the Commission to consider long-term infrastructure projects, as well as charities that deliver benefits over the long-term, when deciding who should be the recipients from the scheme.”
Many accounts that are now dormant will have been set up before the widespread adoption of the internet and the only contact details are often postal. The increasing digitalisation of financial services will facilitate a significant improvement in the accuracy of customer data management. TISA is leading the way with its project to develop a digital identity for consumers of UK financial services. One of the many benefits will be the ability of a user to input a change of address or personal details once and then automatically notify all firms they are sharing their digital identity with.
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For further information please contact:
Alistair Kellie – Telephone: 0207 680 6558/Email Alistair.Kellie@newgatecomms.com
Sara Neidle – Telephone: 020 7680 6550 / Email Sara.Neidle@newgatecomms.com
Jessica Hodson Walker- Telephone: 020 7680 6538/EmailJessica.HodsonWalker@newgatecomms.com
Email: TISA@newgatecomms.com
Notes for Editors
TISA is a not-for-profit membership association operating within the financial services industry. The focus of our recommendations and actions is improved outcomes for consumers and UK plc with this approach leading to a stronger UK financial services industry.
TISA’s growing membership comprises over 150 firms involved in the supply and distribution of savings and investment products and services. These members represent many different sectors of the financial services industry, including asset managers, insurance companies, fund managers, distributors, building societies, investment managers, third party administrators, consultants and advisers, software providers, financial advisers, pension providers, banks and stockbrokers.
TISA has a successful track record in working cooperatively with government, regulators, HMT, DWP and HMRC to improve the performance of the industry and the outcomes for the public. Effective policy and regulation and the creation of efficient industry infrastructure continues to be the major focus for our members. TISA is unique in that it represents the entire financial services industry, incorporating cross-sector policy, industry and technical expertise. Whilst we maintain a solid partnership with government, the regulators and wider industry, we remain independent and develop neutral views and opinions. This impartiality is reflected in our ability to drive development projects which improve industry performance and consumer outcomes, putting us in the unique position of being able to constantly challenge the status quo to bring about material improvement.