Pension Commission (PenCom) announced this in a statement on
Friday.
In 2021, PenCom approved recapitalisation for PFAs, with a
12-month transition from April 27, 2021 to April 27, 2022.
The commission declared then that the recapitalisation was
expedient as the value of pension fund assets under management and custody had
grown exponentially.
The assets had grown by 244 per cent from N3 trillion in
2012 (when the previous recapitalisation was done), to N12.29 trillion (as at
Dec. 31, 2020).
The sustained growth in assets implies greater fiduciary
responsibilities that require more operational capacity by the PFAs.
There was also an urgent need to ramp up PFAs capacity to
manage the increasing number of registered contributors and value of pension
fund assets in their custody.
PenCom explained that 10 PFAs 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.
The commission stated that the exercise resulted in some
mergers and acquisitions, which led to the reduction of the number of PFAs from
22 to 20.
“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.
“With the conclusion of the recapitalisation, stakeholders, particularly Retirement Savings Accounts holders should expect increased effectiveness and efficiency as well as improved service delivery from PFAs,’’ PenCom stated.
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