An expansion of the Dormant Assets Scheme into the investment and wealth management sector could unlock an additional £240m to support good causes, according to the scheme’s operators.

The Investment Association (the IA) and Reclaim Fund Ltd (RFL) have made the estimate as they announce the first investment and wealth companies to be involved in the scheme’s expansion

Jupiter, J.P Morgan, Janus Henderson and Schroders have joined more than 50 banks, building societies and insurers already signed up to the scheme, which sees dormant assets used for good causes.

Since its launch in 2011 more than £1bn has been transferred from dormant accounts to good causes.

The involvement of the first investment and wealth management firms has been welcomed as a “milestone” by charities minister Stephanie Peacock.

“I encourage other firms to join this vital mission and help us turn dormant assets into life-changing opportunities for people across the country,” she said.

RFL chief executive Adrian Smith 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.”

In June the Department for Culture, Media and Sport (DCMS) announced that a total of £440m is set to be made available to good causes through the Scheme by 2028, which is £90m above previous estimates.

Four named causes are to benefit: supporting young people in disadvantaged communities, tackling financial exclusion, bolstering social investment, and investing in community wealth funds.

Dormant account fund holders can reclaim the money at any point under the scheme.

Schroders global head of endowments and foundations Kate Rogers added: “The scheme has already made significant positive impact in the UK, and we're pleased to support innovative programmes across youth, financial inclusion, community wealth and social investment, while safeguarding the right of clients to reclaim their funds in full at any point."

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