South Africa’s Financial Sector Conduct Authority Reveals R88.56 Billion in Unclaimed Assets

South Africa’s Financial Sector Conduct Authority (FSCA) disclosed that financial institutions in the country are holding an estimated R88.56 billion in unclaimed assets.

The FSCA’s revelation indicates a significant amount of unclaimed assets in the financial sector, with potential implications for both institutions and customers.

Unclaimed assets encompass various financial holdings owed to individuals by financial entities that have not been claimed.

The concept of unclaimed assets extends to assets that have been forgotten by clients or are unknown to beneficiaries who have rights to claim them.

Assets become classified as unclaimed when they remain unpaid or unclaimed by entitled beneficiaries for at least 24 months.

In September 2022, the FSCA initiated discussions on an unclaimed asset framework in South Africa, building on the efforts of the National Treasury.

The framework aims to address challenges in identifying and reuniting unclaimed assets with their rightful owners or beneficiaries.

Assets such as retirement fund benefits, bank deposits, interests in collective investment schemes, insurance policies, and securities are proposed to be included within the scope of the framework.

The FSCA’s response to feedback received in March 2024 underlines the importance of establishing a structured framework for managing unclaimed assets.

Nedbank highlighted the simplicity in checking for unclaimed assets through the FSCA’s online search tool, facilitating the process for individuals to claim their rightful funds.

Individuals seeking unclaimed funds on behalf of deceased persons can reach out to the Association for Savings and Investment South Africa (ASISA) for assistance.