Unclaimed Dividends Law Poses Threat to Investor Confidence and Financial Inclusion

In contrast to recent directives given by the head of the Securities and Exchange Commission (SEC), registrars have been advised to ensure that all accounts of deceased shareholders are rightfully transferred to their beneficiaries. This new directive seeks to address the long-standing issue of unclaimed dividends and shares of deceased individuals, which has often resulted in financial losses for their rightful heirs.

The SEC’s new stance on the transfer of deceased shareholders’ accounts comes as a welcome relief to many who have long struggled to claim what is rightfully theirs. The issue of unclaimed dividends and shares has plagued the Nigerian financial market for years, with many beneficiaries unable to access their inheritance due to the lack of clear guidelines and procedures for transferring ownership.

The SEC’s directive emphasizes the importance of transparency and accountability in the handling of deceased shareholders’ accounts. Registrars are now required to take proactive measures to identify and transfer such accounts to the rightful beneficiaries, ensuring that they do not suffer financial loss due to lack of access to their inheritance.

This new directive is a significant step towards addressing the challenges faced by beneficiaries of deceased shareholders in Nigeria. By ensuring that registrars comply with the transfer of accounts to rightful heirs, the SEC is actively working to protect the interests of investors and promote trust and confidence in the capital market.

The issue of unclaimed dividends and shares is not only a financial loss for beneficiaries but also undermines the integrity of the financial system. By addressing this issue head-on, the SEC is sending a clear message that it is committed to upholding the rights of investors and ensuring that they receive their rightful inheritance without unnecessary hurdles or delays.

The importance of ensuring the proper transfer of deceased shareholders’ accounts cannot be overstated. It is essential for the beneficiaries to have access to their inheritance in a timely and efficient manner, without having to navigate a complex and bureaucratic process. The SEC’s directive aims to streamline the transfer process and make it more transparent and accessible for all parties involved.

Overall, the SEC’s new directive on the transfer of deceased shareholders’ accounts is a positive development that will benefit many Nigerians who have long struggled to claim what is rightfully theirs. By prioritizing transparency, accountability, and efficiency in the handling of such accounts, the SEC is taking a significant step towards strengthening investor protection and restoring trust in the capital market.