Jupiter, JPMorgan, Janus Henderson, and Schroders have become the first participants of the investment and wealth management sector to join the dormant asset scheme.
The firms join more than 50 banks, building societies and insurers already signed up to the scheme, which allows dormant assets to be channelled into social and environmental causes while customers are able to reclaim their funds in full at any point.
The move follows last year’s rule changes which allowed the sector to participate.
The Investment Association and Reclaim Fund (RFL), the scheme’s operators, have worked together to enable the sector to be opened.
In 2023, Aviva and Reclaim Fund completed the first transfer of dormant assets from the insurance and pensions sector to the scheme.
Since its launch in 2011, the scheme has released over £1bn to good causes.
The latest expansion could add £240mn for financial inclusion, financial capability and other initiatives set out in the government’s 2025 dormant assets strategy.
Stephanie Peacock MP, minister for sport, tourism, civil society and youth, said: “With over £1bn already released for good causes, we’re seeing real impact — a twelvefold growth in the UK social investment sector.
“With the government’s new £440mn funding commitment, I encourage other firms to join this vital mission and help us turn dormant assets into life-changing opportunities for people across the country.”
Meanwhile, Chris Cummings, chief executive of the IA, said: “We are proud to help launch the dormant assets scheme in investment management. These first four innovative firms will act as a catalyst for others to join the scheme.”
We believe this is a powerful way for our industry to make a lasting, positive impact across society.
The investment firms that joined also said they were pleased to be part of the scheme and delighted to be the “inaugural participants.”
Jasveer Singh, group general counsel at Jupiter Asset Management, and industry champion for the dormant assets scheme, said: “This pioneering initiative, which I have personally been involved in since 2022, is a powerful force for good that has already helped to make a positive difference in the lives of many people in the UK.
“Crucially, the scheme should help improve financial literacy and education across our society, which is essential to unlocking wealth creation in the UK.”
Singh said the impact the industry can have is large and he is confident other firms will follow.
Social impact
Dormant assets funding is distributed through the National Lottery Community Fund across the four nations of the UK in line with policy direction from the government.
In England, dormant assets funding is used to support financial inclusion, youth and social investment through four dormant assets spend organisations: Big Society Capital; Access — the Foundation for Social Investment, Fair4All Finance and Youth Futures Foundation.
In March 2023, following a public consultation, the government announced that funding for these causes would continue, alongside a new cause, community wealth funds.
It said the money sat in dormant bank accounts and pensions will be used to boost local communities and those struggling with the cost of living.
Adrian Smith, chief executive of RFL, said: “This is a landmark moment for the scheme. The early adoption by Jupiter, JPMorgan, Janus Henderson, and Schroders reflects their commitment to social impact and strong ESG practice, without compromising the rights of their clients.
“Participation in the scheme is voluntary and straightforward — we welcome the opportunity to speak to interested firms and support their journey to participation.”
sonia.rach@ft.com