20 PFAs meets regulatory capital requirement of N5 billion, PenCom.
Up to 20 Pension Fund Administrators (PFAs) were able to satisfy the April 27 deadline for a Minimum Regulatory Capital (shareholders’ fund) of N1 billion to N5 billion, according to the National Pension Commission (PenCom).
PenCom announced this in a statement on Friday, following the approval of PFA recapitalization with a 12-month transition period from April 27, 2021 to April 27, 2022.
PenCom has awarded certificates of compliance to 207 organizations at the start of the year.
What they are saying
The Commission revealed that assets had grown by 244 per cent from N3 trillion in 2012 (when the previous restoration was done), to N12.29 trillion (as at Dec. 31, 2020), adding that sustained growth in assets signifies increased responsibilities that require more operational capacity by the PFAs.
- It stated, “10 PFAs had met the new regulatory capital requirement of N5 billion as at Dec. 31, 2021, while the others intensified efforts to meet the April 27, 2022 deadline” citing that the exercise resulted in some mergers and acquisitions, which led to the reduction of the number of PFAs from 22 to 20.
- PenCom said “The commission approved the acquisition of AIICO Pension Managers Ltd. by FCMB Pensions Ltd. and the merger between Tangerine Pensions Ltd. and APT Pension Funds Managers Ltd.
- “It also approved a subsequent change of name of the merged entities to Tangerine APT Pensions Limited.
- “In addition, the commission approved Norrenberger’s acquisition of IEI-Anchor Pension Managers Ltd. after its acquisition of majority shareholding.
It went on to say that with the conclusion of the rebuilding program, stakeholders, particularly those with Retirement Savings Accounts, should expect PFAs to be more effective and efficient, as well as provide better service.
Source- Nairametrics
