In a bold effort to address financial empowerment and tackle unclaimed assets, the Johannesburg Stock Exchange (JSE) has announced a nationwide campaign to help South Africans claim billions in unclaimed dividends.
The initiative aims to resolve a pressing issue in the financial sector, where billions of rands remain unclaimed due to lost track of assets or a lack of awareness about owed funds.
Research by the Financial Sector Conduct Authority (FSCA) in 2022 revealed that South Africa has approximately R88.56 billion in unclaimed assets, including retirement benefits and dividends. Among these, the JSE accounts for R1 billion in unclaimed dividends.
According to Ursula Du Plooy, head of issuer services at the JSE, unclaimed dividends result from various factors, including frequent changes in address, jobs, or bank accounts.
“People move homes, change jobs, retire, or frequently switch bank accounts. Many lose track of the dividends and benefits owed to them. Some even remain unaware of the dividends they’re entitled to. In fact, the JSE alone is sitting on R1 billion in unclaimed dividends,” she explained.
The JSE’s efforts to resolve this issue intensified following its acquisition of Link Market Services four years ago.
This acquisition enabled the JSE to manage shareholder registers for listed companies, uncovering billions in unclaimed dividends.
However, tracking down shareholders has proven challenging due to outdated contact details and incomplete records.
To address these challenges, the JSE initiated the campaign at the request of issuers whose dividends remain unclaimed.
As a trusted financial institution, the JSE is well-positioned to lead this effort and alleviate concerns about potential scams.
The JSE has partnered with JSE Investor Services (JIS), its shareholder services subsidiary, to manage the campaign.
The initiative will also involve a comprehensive educational drive, leveraging platforms such as radio, social media, and TikTok to spread awareness and guide shareholders.
From February 1, 2024, individuals can contact a dedicated call center to check if they have unclaimed dividends.
After providing their details, their information will be cross-referenced through ShareHub, a centralised system connected to JIS’s extensive database.
To ensure accuracy and prevent fraud, a thorough verification process will follow any potential matches.
This includes verifying FICA compliance and consulting Home Affairs records.
For deceased estates, claimants must provide legal documentation confirming their status as rightful executors.
The JSE is also working with Baker Street, a company specialising in data verification, to further refine the process.
While payouts may take time, Du Plooy emphasised the importance of this meticulous approach.
The campaign has garnered support from major companies listed on the JSE, including Sasol, Old Mutual, and Naspers.
According to Vuyo Lee, the JSE’s director of marketing and corporate affairs, reclaiming unclaimed dividends could significantly benefit South Africans.
“Returning R4.5 billion worth of unclaimed dividends back to South African investors can make a profound economic impact on the everyday lives of people,” Lee stated.
Du Plooy noted that the campaign could extend over several years.
“We anticipate that this campaign could run for at least three years, if not longer,” she said.
Looking ahead, the JSE hopes the campaign’s success will pave the way for addressing other unclaimed assets, such as pension funds, with the same dedication and thoroughness.
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