FSB TO ACCOUNT FOR UNCLAIMED PENSION FUNDS
PLANS are afoot to create a central database for the billions of rands that remain unclaimed from pension funds and bank accounts.
Financial Services Board (FSB) deputy executive officer Caroline da Silva, who is also responsible for financial advisory and intermediary services, said the creation of a central database has been under discussion for some time.
She said the FSB has a database of unclaimed benefits which she said amounted to billions of rands, but this excluded bank accounts.
At last Thursday’s Sowetan Dialogues, attendees also complained about the financial sector’s six ombudsmen.
National Treasury acting deputy director Kershia Singh said the twin peaks model of financial regulation would set up a full-time oversight body, the ombuds council, which will also be the regulator of the existing ombudsmen.
The ombud council will assist in ensuring that customers have access to, and are able to use, affordable, effective, independent and fair alternative dispute resolution processes for complaints about financial institutions in relation to products and services.
Singh said the council will set rules for the ombudsmen in the financial sector – financial advisory and intermediary services, banking, credit, short-term and long-term insurance.
The existing council is part-time and there are plans to set up a Financial Services Tribunal headed by a judge, according to Singh.
She said the ombudsmen were independent middle men between consumers and financial services companies.
They offer free services and services companies must abide by their decisions.
Da Silva said the new law will also require that a transformation strategy be published within six months of its promulgation.
She said the FSB never had a legislative mandate to promote transformation and inclusion.
“It will ensure that the regulatory framework doesn’t create barriers for entry in the financial services sector,” she said.
Da Silva was responding to questions from Nceba Radebe from South African Insurance, who quizzed the panel on the meaning of transformation in the financial services sector.
“Is it that it doesn’t exist or does but will be highlighted more?”
Transformation of the financial sector is one of the objectives of the Financial Sector Regulation Bill.
The bill states that the transformation it wants is the kind envisaged by the Financial Sector Code for Broad-Based Black Economic Empowerment.