Prudential Ghana is advocating for government to pay interests or dividends on unclaimed balances of individual funds which will be logged in the yet to be establish Unclaimed Assets Scheme Program (UASP).
According to the company, failure of government to pay interest on the funds at the time of claim will be a dent on the reputation of the fund managers or the company.
Speaking in an interview with Citi Business News, the Chief Executive Officer of Prudential Ghana Emmanuel Mokobi Aryee said once government invest the funds, policy holders must have good returns on their principals invested.
“If they take it away from us they must pay the interest, such that the time that the policy holders come back to claim their investments they will get the appropriate returns and walkway very happy,” he said.
Mr. Aryee warned that if government fails to pay the right returns on the claims there will be a repercussion on the operations and reputation of the insurance companies.
“This is because the fund owners are the ones known by the investors and if at the time of making the claim government fails to pay out the acceptable or appropriate returns that they are expecting, the impression would be created as if their funds have not been managed well by the insurances companies or fund managers and that would not go well with the industry,” he stressed.
He was of the view that it would also have being prudent if the funds were allowed to sit in the original accounts for it to be invested and interest paid on it.
“I would have loved the monies to sit with me and use it to work and earned some returns on the money. Obviously the majority must go to the owners of these monies and then of course there is a piece for you to runaround for your operations and efforts”, he suggested.
The Unclaimed Assets Scheme Program
His comment comes at a time that government has announced plans to establish an Unclaimed Assets Scheme Program.
The Unclaimed Asset Scheme Program according to Finance Minister, Seth Terpker is for managing assets or funds that are presumed to be abandoned, stranded and remain unclaimed by their owners.
Bank customers demand interest
Meanwhile, some bank customers are demanding that interest is paid even though the public seem to have welcomed the passage of section 143 (Unclaimed funds) of the Banks and Specialized Deposit – Taking Institution Act 2015.
They are calling for interest to be paid on the funds which is likely to be moved to the Bank of Ghana after almost five years of being inactive.
Section 143 Clause 1 of the Banks and Specialized Deposit – Taking Institution Act, 2015, has laid down processes to which balances on lost or dormant accounts should be handled.
Such funds, according to the new law is expected to be moved finally to the central bank and no withdrawal shall be made on the account except with the permission of two authorized officers of the bank or the specialized deposit-taking institution involved.
The new law according to banking consultant Nana Otuo Acheampong lays to rest the certainty surrounding the definition of a dormant account in the banking industry. According to him the law prevents the risk of the money being tampered with.
By: Norvan Acquah – Hayford/citibusinessnews.com/Ghana