ICI Confirms That the Wisconsin Trigger for Abandoned Property Escheatment Is Returned Mail, Not "No Contact"

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June 18, 2014

TO: TRANSFER AGENT ADVISORY COMMITTEE No. 36-14
TAAC ABANDONED PROPERTY TASK FORCE RE: ICI CONFIRMS THAT THE WISCONSIN TRIGGER FOR ABANDONED PROPERTY ESCHEATMENT IS RETURNED MAIL, NOT “NO CONTACT”

 

The Institute has been contacted by the Wisconsin Securities Commissioner’s Office and asked to inform our members that Wisconsin utilizes a returned mail trigger for deeming property abandoned – not a “no contact” trigger.  Apparently, as a result of incorrect information being provided to mutual funds by one or more abandoned property vendors, funds have been reaching out to those shareholders in Wisconsin with whom they have not had contact to urge the shareholder to contact the fund company to protect the account from escheatment.  Broker-dealers whose customers have received such letters have complained to the Securities Commissioner’s Office regarding this issue.  In response, the Securities Commissioner’s Office has asked us to help clarify this issue for our members – hence this memo. 

Abandoned property is under the jurisdiction of the Wisconsin State Treasurer and Department of Revenue, not the Wisconsin Securities Commissioner.  Accordingly, I have also confirmed with the Administrator in Wisconsin’s Unclaimed Property Division of the State Treasurer’s Office that the trigger for deeming a mutual fund account abandoned in Wisconsin is, indeed, returned mail.  Members are urged to revise their policies and procedures accordingly.

 

Tamara K. Salmon
Senior Associate Counsel