The Treasury Select Committee is to conduct an investigation into unclaimed assets and what should happen to them. The government and the financial industry have agreed that an unclaimed asset is an account that has shown no activity in 15 years. It has been suggested that these funds will be invested in the United Kingdoms banking sectors for community projects.
The finance industry has welcomed this move, as it will provide clarity in an area where there is a lot of confusion about who the funds belong to and what should happen to them.
Our view
The moneys should not be used to prop up the ailing ‘compensation’ funds as has also been suggested. The industry regulator, the FSA has to get to grips with both those in the industry who mis-sell but also those outside the industry, so-called ‘ambulance chasers’ who advise on compensation claims which win but may not have been valid.