Treasury wants to control cash pile

"Government is implementing a reform to centralise the management and investment of over R88-billion in unclaimed financial assets, which include retirement benefits, bank accounts, investments and insurance payouts.

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Minister of Finance Enoch Godongwana and President Cyril Ramaphosa. ASISA says first priority is to reunite owners with their assets.

(Gallo Images)

"This reform aims to ensure that the benefits of these assets accrue to the asset owners rather than to financial institutions, government or any other parties. The proposed framework provides for the transfer of these assets to a central manager to drive down costs and improve payouts with appropriate governance for investment, alongside the appointment of a central administrator responsible for administration, record-keeping and tracing," National Treasury said in the budget review document released when finance minister Enoch Godongwana tabled his budget last month.

It said the reform would be rolled out in phases, starting with the retirement fund sector, but could be extended to other categories of unclaimed benefits, including dormant bank accounts, investments and insurance payouts.

A discussion document outlining this proposal would soon be released for public consultation, Treasury added.

The Treasury declined to comment further when contacted for comment, saying the discussion document would be released later this year.