Asset managers sign up to support Dormant Assets Scheme
Investment managers including Jupiter, Schroders, J.P. Morgan and Janus Henderson have signed up to a scheme to channel dormant assets into social and environmental causes while safeguarding the right of customers to reclaim their funds in full at any point.
Launched in 2011 and previously backed by 50 banks, building societies and insurers, the Dormant Assets Scheme has already released over £1bn to good causes.
Now, investment managers are signing up to the scheme after last year’s regulatory rule changes that unlocked the sector’s ability to participate. The Investment Association (IA) and Reclaim Fund, the scheme’s operator, have proactively worked together to enable the sector to be opened.
Jupiter, J.P. Morgan, Janus Henderson, and Schroders are the first participants in the investment management space, and with this expansion an additional £240m for financial inclusion, financial capability and other initiatives set out in the government’s 2025 Dormant Assets Strategy.
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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.
“Together, we can create a lasting impact and support communities throughout the UK by unlocking potentially record-breaking levels of funding for initiatives that include supporting financial literacy and inclusion.”
Adrian Smith, chief executive of RFL, said: “This is a landmark moment for the scheme. The early adoption by Jupiter, JP Morgan, 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.”
This article first appeared on Portfolio Adviser