PENCOM Issues 28-Day Notice To Pfas To Recapitalise

The National Pension Commission (PENCOM) has issued a 28-day notice to Pension Fund Administrators (PFAs) to meet the new capital base of N1 billion or fold up.

This was contained in a press statement released by Mr Emeka Onuorah, PENCOM’s Head of Communication, on Thursday in Lagos.

The statement said that the commission threatened to revoke the licence of the PFAs which failed to meet the deadline, adding that it had begun a process toward that end.

It said that any revocation would be in line with the provisions of Section 54 of the Pension Reform Act, 2004.

However, the statement urged contributors of the affected PFAs of the safety of their funds even after the revocation of any licence.

“This is because pension fund assets are securely in the custody of Pension Fund Custodians licensed and strictly supervised by the commission in accordance with the Act setting it up,” it ?said.

The statement added that as at June 30, six of the 24 licenced PFAs had attained the new capital base.

It said that 12 PFAs met the new capital base after the directive was issued.

The News Agency of Nigeria (NAN) reports that PENCOM on May 31, 2011, issued a circular for the licenced PFAs to recapitalise to the tune of N1 billion before June 30, 2012.