FSCA releases paper on unclaimed assets

THE Financial Sector Conduct Authority (FSCA) this week launched a seminal discussion paper on the almost R90 billion in unclaimed assets across the financial sector, the bulk of which (about R47bn) are in retirement funds.

The paper builds on work done by the FSCA and National Treasury to reunite unclaimed assets with their rightful owners and to stem the build-up of such assets in the future.

Dealing with unclaimed assets is a complex task, with many types of assets involved. They include retirement fund benefits, bank deposits, assets in collective investment schemes, life and nonlife insurance policies, and listed shares.

FSCA Commissioner Unathi Kamlana says work is continuing to establish the true value of unclaimed assets in the sector, given that these assets are held by various financial institutions. He says a big hindrance to disbursing these funds is the lack of a common understanding of what constitutes dormant or unclaimed assets, and the lack of reliable data.

“It is quite clear that we have to improve the outcomes for customers and that’s what this paper is trying to achieve,” says Kamlana.

The FSCA’s discussion paper proposes 13 recommendations in support of a holistic and consistent approach to the treatment of unclaimed assets. One of the most significant proposals is the establishment of a single Central Unclaimed Assets Fund into which all unclaimed assets, once identified as such, should be transferred and managed.

The Discussion Paper on Unclaimed Assets can be downloaded from www.fsca.co.za.