SEC moves to protect beneficiaries from losing inherited investments

The Securities and Exchange Commission (SEC) has moved to strengthen protection for beneficiaries of deceased investors, with a new initiative aimed at reducing unclaimed dividends, dormant investment accounts and other financial assets that remain inaccessible after the death of their owners.

The Commission said the initiative would help beneficiaries overcome probate, documentation and investor-record challenges that often prevent families from accessing shares, dividends and other capital market investments inherited from deceased relatives.

Speaking at a Probate/Unclaimed Monies Awareness and Investor Clinic organised by the SEC in partnership with Meristem in Abuja, SEC Director-General, Dr. Emomotimi Agama, said investor protection should extend beyond the lifetime of a shareholder. “For many Nigerian families, the death of a loved one who held shares, dividends, or other investments marks the beginning of a long and often confusing journey,” Agama said.

He said unclaimed funds and dormant assets remained a persistent challenge in the capital market, noting that they represented funds belonging to families but remained disconnected from their intended beneficiaries.

According to him, the SEC was seeking to address the problem by improving investors’ understanding of probate procedures, documentation requirements and the processes for recovering inherited investments. “Today is not simply an awareness session. It is a working clinic, designed to equip you with practical knowledge: how probate works, how to obtain the right documentation, and how to recover what is rightfully yours,” he said.

Agama said the Commission’s responsibility to protect investors included ensuring that beneficiaries could access assets belonging to deceased shareholders without unnecessary difficulties. “This Commission exists to protect your rights in the capital market, and that protection does not end when a shareholder passes on. It extends to ensuring their beneficiaries can access what is due to them without unnecessary hardship,” he added.

Acting Chief Executive Officer of Meristem Registrars and Probate Services Limited, Ms. Nkechinyelu Okoye, attributed a significant part of the problem to limited awareness and poor estate planning.

Okoye said some beneficiaries were unaware that financial investments such as shares, fixed-income investments and funds held through digital savings platforms could form part of a deceased person’s estate. “There are three categories of beneficiaries that we encounter quite often. The first are those who think only land, houses and other physical assets can be transferred legally from deceased loved ones. They do not realise that financial assets such as shares, fixed income investments and even money in savings apps also form part of an estate,” she said.

She said another category comprised beneficiaries who did not know that their deceased relatives held financial assets, while some knew about the investments but were unfamiliar with the procedures and documentation required to make claims.

Okoye identified a further problem among investors who fail to provide or update their Know Your Customer (KYC) information, making it difficult for their families to establish the existence or ownership of investments after their death. “I dare add a fourth category. These are investors who do not provide or update their KYC documents and, as a result, when they pass on, their loved ones have no idea they have investments to claim,” she said.

She said the combination of these factors had contributed to the volume of unclaimed dividends, dormant accounts and other financial assets remaining inaccessible to beneficiaries. “All of these categories contribute to the several unclaimed assets lying all around. Ultimately, financial resources that could have been beneficial to these beneficiaries remain inaccessible,” she said.

The SEC said the initiative would also provide investors, beneficiaries, executors and administrators with information on tracing investments, verifying shareholder records, resolving probate-related issues and recovering unclaimed capital market assets.

Okoye urged investors to prepare valid wills, maintain accurate shareholder records and regularly update their KYC information to reduce difficulties for beneficiaries. “We want investors to appreciate the importance of preparing a valid Will, maintaining accurate shareholder records and ensuring that their affairs are properly organised. Taking these simple steps today can save families considerable stress and delay in the future,” she added.