South Africa’s Financial Sector Conduct Authority (FSCA) said that financial institutions in the country hold an estimated R88.56 billion in unclaimed assets.
The number may be much higher because of the uncertainty of what constitutes an unclaimed asset and the lack of reliable data.
Unclaimed assets generally refer to any asset due to a person by a financial institution that remains unpaid or unclaimed.
More specifically, it means assets the client has forgotten about or for which the client’s heirs and beneficiaries are unaware they could claim.
Funds become unclaimed when the beneficiary does not receive them within 24 months of becoming eligible to do so.
On 22 September 2022, the FSCA published a discussion paper on the framework for unclaimed assets in South Africa.
The paper aimed to build on the work conducted by the National Treasury regarding unclaimed retirement benefits.
It also wanted to foster debate on how lost accounts and unclaimed assets should be treated in a way that is consistent with treating customers fairly principles.
The FSCA proposed a specific set of assets to be included within the scope of its proposed unclaimed asset framework.
These assets include retirement fund benefits, bank deposits, interests in collective investment schemes, life and non-life insurance policies, and securities.
It also includes any income, dividend, or other proceeds from or related to those financial products and financial instruments.
Lost accounts and unclaimed financial assets are a global challenge and unclaimed retirement benefits impact underprivileged and vulnerable people disproportionately.
The paper seeks to curb the practical challenges in identifying and reuniting unclaimed assets with their rightful owners or beneficiaries.
In March 2024, the FSCA published a response to the feedback it received on its unclaimed assets discussion paper.
It is now developing a framework that outlines the requirements for the identification, monitoring, management, tracing, and reporting of unclaimed assets.
“The framework is an important component of our objective to enhance transparency, accountability and effectiveness in managing unclaimed assets,” it said.
“It reflects our commitment to address unclaimed assets in a systematic and well-structured manner.”
How you can check if you have unclaimed assets
Millions of South Africans are linked to unclaimed assets and benefits they do not know about.
Five years ago, retirement funds reported that around 4.8 million members had not claimed their funds. This alone amounts to R43 billion.
There are many reasons for unclaimed assets, including poor information updates and record keeping, employer oversight, and changes in intermediaries.
Nedbank said finding out whether you have unclaimed funds or assets is simpler than you might think.
A good start is to visit the FSCA website and use the search tool to input basic information like your name, surname, identification number, fund name, and employer.
“If there’s a potential match, they’ll provide you with the contact details of the relevant fund or administrator. You can then contact them directly and follow their usual claims process,” it said.
If you’re searching for unclaimed funds on behalf of a deceased person in South Africa, you can contact the Association for Savings and Investment South Africa (ASISA).
ASISA is a non-profit organisation that represents the collective interests of various financial entities in South Africa.
If you have unclaimed funds or assets, you should identify the source first and then contact the holder.
Simply put, you should contact the organisation, like a bank or asset manager, that is holding your unclaimed funds.
You’ll need to provide proof of your identity and entitlement. This might include details like your name, ID number, fund name, employer, policy or account number, or certificate number.
You should follow the claims process closely. Each company has a unique process for handling claims.
“Depending on the type and amount of your unclaimed funds, there might be a waiting period before your claim is processed and approved,” Nedbank said.
Once your claim is approved, you’ll receive your unclaimed funds. It is your responsibility to ensure the payment is accurate and there are no errors or discrepancies.
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