The FCA is to expand its £1.35bn Dormant Assets Scheme (DAS) to include unclaimed client money and investment assets.

Following consultation, the regulator will press ahead with adding client money and investment assets despite some concerns the expansion may cause some risks in determining unclaimed money.

The FCA says that the Dormant Assets Scheme (DAS) has already ‘unlocked’ £745m from dormant accounts - from over £1.35bn held in dormant bank and building society accounts for charities and social causes, such as getting young people into work or offering affordable credit to families.

The expansion of the scheme should add another £880m in potential funds to the DAS.

Details were published today by the FCA in 'Policy Statement PS24/10 Expansion of the Dormant Assets Scheme – second phase'. The document follows Consultation Paper CP23/12.

The FCA says the new rules primarily affect:

• Reclaim Fund Limited (RFL)

• Managers and depositaries of authorised collective investment schemes

• Firms holding client money

The DAS aims to use money which is left unclaimed or unused in dormant in accounts for a long time. The money is returned if a claimant materialises and there are safeguards in place to ensure all efforts are made to contact the original holders.

With the success of the first phase, the plan is to extend the Dormant Assets Scheme to a second phase of the expansion which will bring dormant investment assets and client money into the scheme. 

The scheme is led by industry and backed by government, the FCA says. The Dormant Assets Scheme aims to reunite people with their financial assets but where that is not possible, the money is used to support UK growth through good causes. 

In terms of client money, Policy Statement PS124/10 says that expansion of the DAS will provide firms with an option to transfer unclaimed client money to the DAS provided terms are met.

• Read PS24/10: Expansion of the Dormant Assets Scheme – second phase.