PenCom clarifies investment of pension fund assets – Nigeria – The Guardian Nigeria News – Nigeria and World News

The National Pensions Commission (PenCom) advises that equity investments in FBN Holdings made by Leadway Pensure Ltd on behalf of the pension funds under its management are in the name of the pension fund and belong to the RSA holders.

This comes in the context of an allegation of misuse of the pension fund by Leadway Pensure Limited.

PenCom explained in Abuja yesterday that the stakes in FBN Holdings Plc as noted could not be appropriated or classified as PFA related party stakes.

He said Leadway Pensure Ltd did not breach investment regulations by investing pension funds in the shares of FBN Holding Plc.

He added: “Records, which can be confirmed by the Securities and Exchange Commission, show that equity investments in FBN Holdings Plc are in the name of the pension fund on behalf of RSA holders.”

Citing the relevant sections of the Pensions Reform Act 2014 (PRA 2014), PenCom further explained: “The assets of pension funds are managed by licensed PFAs and held by pension fund depositories (PFCs). ) on behalf of holders of Retirement Savings Accounts and other beneficiaries of the Contributory Pension Scheme (CPS), in accordance with the provisions of Section 69(b) of the PRA 2014, provides that the PFA and PFC must take reasonable care that the management or custody of pension funds is carried out in the best interest of the holders of a retirement savings account.Thus, all investments made by approved PFAs in eligible securities and persons assets are “ring-fenced” and belong to RSA holders and other pension beneficiaries. As a result, these pension assets cannot be attributed directly or indirectly to an individual or a party related to the PFA.

According to the pension regulator, the provisions of Article 6.1(iii) of the Investment Regulations dealing with conflicts of interest state that “the PFA or any of its agents shall be prohibited from investing the assets of the pension funds in shares or any other securities, issued through public or private placement agreements, by a party/person related to any shareholder of the PFA. Related persons/parties as defined in Section 1.10 of the Investment Regulations “include natural persons related by blood, adoption or marriage; legal entities one of which exercises control or significant influence over the other, or both of which are controlled by another person or entity; a body corporate in which one of the above-mentioned persons holds a five percent or more beneficial interest; and any other relationship that can reasonably be construed as related persons or parties. »

The Commission reiterated that there were no breaches of its investment regulations, urging the general public to be guided accordingly.

The Commission reaffirmed its commitment to fulfilling its regulatory and supervisory functions as well as to ensuring the security of pension assets and the soundness of the pension sector.

Dolores W. Simon