Nigeria: N1 Billion Capitalization – PenCom to Revoke IGI, Citi Trust Licences
The National Pension Commission (PenCom) has issued a 28-day notice to revoke the operating licences of IGI Pension Fund Managers Limited and Citi Trust Pension Managers Limited for their failure to recapitalize to N1 billion as directed by the commission. Pension Fund Administrators were given June 30th deadline to recapitalize from N150 million to N1 billion by PenCom.
A statement by PenCom spokesman Emeka Onuora yesterday said the two PFAs failed to meet the minimum capital requirement and would therefore revoke their licences. It also said that First Guarantee Pension Limited has been placed under regulatory intervention.
The statement read: “The commission has issued 28 days notice of its intention to revoke the operating licences of the two PFAs in category D pursuant to the provisions of Section 54 of the Pension Reform Act (PRA) 2004. The commission would like to assure the public, particularly the contributors of the two affected PFAs of the safety of their pension fund assets even in the event of the revocation of the licences of the PFAs. This is due to the fact that the pension fund assets are securely in the custody of Pension Fund Custodians licensed and strictly supervised by the commission in accordance with the PRA 2004.”
It said that ARM Pension Managers (PFA) Limited, Leadway Pensure PFA Limited, Premium Pension Limited, Sigma Pensions Limited (Sigma), Stanbic IBTC Pension Managers Limited and Trustfund Pensions Plc met the minimum capital requirement before the circular was issued in 2011.
On the other hand, Aiico Pension Managers Limited, APT Pension Fund Managers Limited, Crusader Sterling Pensions Limited, Fidelity Pension Managers Limited, Future Unity Glanvills Pensions Limited and IEI-Anchor Pension Managers Limited met the minimum capital requirement after the issuance of the circular.
Others that met the requirement after the circular was issued include NLPC Pension Fund Administrators Limited, Legacy Pension Managers Limited, Oak Pensions Limited (Oak), Pensions Alliance Limited, Penman Pensions Limited and Royal Trust Pension Fund Administrator Limited.
Three other PFAs had their pension assets acquired by other operators. They include Amana Capital Pension Limited acquired by Sigma Pensions Limited (Sigma), Crib Pension Fund Managers Limited acquired by Oak Pension Limited (Oak) and Evergreen Pensions Limited acquired by Oak Pension Limited (Oak).
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