South Africans are owed R88.56 billion in unclaimed assets – check if you can get money

The Financial Sector Conduct Authority (FSCA) makes it easy for South Africans to check if they can claim part of the financial sector’s R88.56 billion in unclaimed assets.

Over the last two years, the FSCA has been working to resolve the challenge of unclaimed assets across the financial sector, the majority of which are in retirement funds.

Unclaimed assets refer to any asset, like a pension fund or dividend, due to a person by a financial institution that remains unpaid or unclaimed.

The typical reasons for unclaimed assets are that people have forgotten about them or their heirs and beneficiaries are unaware they could claim them.

In 2022, the FSCA produced a discussion paper to find a solution that would increase the disbursements of unclaimed assets to beneficial owners.

FSCA Commissioner Unathi Kamlana said a hindrance to disbursing these funds is the lack of a shared understanding of what constitutes dormant or unclaimed assets.

The authority considered international frameworks to determine unclaimed assets’ definitions, management, and reporting.

Its most significant proposal is establishing a Single Central Unclaimed Assets Fund, where all unclaimed assets would be transferred and managed on behalf of the financial sector.

Unclaimed assets include retirement fund benefits, bank deposits, interests in collective investment schemes, insurance policies, and securities.

Unclaimed benefits in the retirement fund sector are the most significant contributor to the pool at approximately 53%.

Collective investment schemes (CIS) and the life insurance sector are also sizable contributors at 38%.

Central securities depository participants (CSDPs) and the banking sector contribute 5% and 4% to unclaimed assets, respectively.

FSCA deputy commissioner Katherine Gibson gave a rough breakdown of unclaimed assets in South Africa.

• R47 billion in unclaimed assets in retirement funds.
• R33 billion approximately in life insurance and collective investment schemes.
• R3 billion in dormant bank accounts.
• R4.5 billion in dividend accounts (CSDPs).

The sectors with the most unclaimed assets are occupational funds in the mining, motor, metal and engineering industries.

JSE to launch an unclaimed dividends initiative

The Johannesburg Stock Exchange (JSE) also said unclaimed financial assets in South Africa are a pressing issue.

The JSE is working on a nationwide initiative to match claimants with their R4.5 billion worth of unclaimed benefits.

The JSE’s unclaimed dividends initiative aims to address the critical issue of unclaimed dividends in the financial markets.

It wants to identify and reunite individuals with unclaimed or lost entitlements stemming from limited or outdated information about the owners or holders of shares.

The initiative includes a shareholder education drive informing the public on how dividends work.

It also addresses the ways unclaimed dividends could arise and how individuals can verify whether unclaimed shares and dividends are due to them.

JSE Investor Services (JIS), a subsidiary of the JSE, is the implementation agent for processing and paying dividends to legitimate claimants.

“Through its tracing services, JIS has over the last five years identified and paid R408 million due to thousands of investors,” it said.

“JIS possesses the expertise, resources and track record to execute the second phase of this JSE initiative,” said Vuyo Lee, director of marketing and corporate affairs at the JSE.

“The rollout of the unclaimed dividends initiative requires the involvement and support of the broader business community and financial markets to ensure its success,” Lee said.

The JSE has engaged with several larger issuers who have indicated their commitment to participate in the initiative.

How to check if you can claim money

Five years ago, retirement funds reported that around 4.8 million members had not claimed their funds. This alone amounts to R43 billion.

The Association for Savings and Investment South Africa (ASISA) advised people to contact their financial services provider to see if they are entitled to unclaimed benefits.

However, many people with unclaimed benefits do not know they are entitled to these benefits or who the financial services provider is.

A much easier way is to use the FSCA website. The Registrar of Pension Funds provides a central database on the FSCA website for this purpose.

It assists members of the public to ascertain through the search engine if any unclaimed benefits are due to them.

People who want to check if they can claim money must provide their name, surname, identification number, fund name, and employer name.

If there is a successful match, the person will be provided with the contact details of the fund or administrator.

Here are the ways people can check if they are owed money as part of South Africa’s R88.56 billion in unclaimed assets.

Search Channel	Link or contact details
Online searches – FSCA website	Click here to check
Email enquiry – ID number	[email protected]
Email enquiry – general request	[email protected]
SMS enquiry – ID no	30913
SMS enquiry – general request	30766
Fax submissions	086 578 1183
Toll-free Telephone enquiries	0800 20 3722  (toll-free)
Walk in clients	River Walk Office Park, Block B, 41 Matroosberg Road, Ashlea Gardens
Written enquiries	PO Box 35655 Menlo Park Pretoria 0102