Pension Supervision: PenCom moves to risk-based approach
Acting DG, PenCom, Aisha Umar
The National Pension Commission (PenCom) said it has this year moved to a more risk based approach to supervising pension operators by aligning its supervisory framework with that of the Financial Services Regulation Coordinating Committee (FSRCC).
Speaking at the 6th session of the Compliance Officers Forum (COF), at Uyo, Akwa Ibom State, the Acting Director General, PenCom, Aisha Umar expressed her belief that the new approach will promote better risk management in licensed pension operators.
She also mentioned that the Commission has recently released the framework and guidelines for the implementation of the Micro Pension Scheme, which she said is targeted at increased participation of employees in the informal sector, Multi-fund structure and revised guideline for Fund Accounting as well as revised Circular for Branch opening and Service Centre by PFAs.
PenCom DG said the Circulars on pension enhancement and processing procedures of deceased benefits entitlement were also released by the Commission, adding that the monitoring and reporting of non-compliance with regards to the implementation of these guidelines and other existing regulations remains part of the responsibilities of the Compliance Officers.
Her words: “This forum will therefore focus on reviewing compliance and ethical culture; institutionalization of Know Your Customer (KYC) processes in the industry; matters of identity theft in data capturing; emerging risks and its mitigating factors as well as other general industry operational issues.
“It aims at creating a platform in line with Section 80 of the Pension Reform Act (PRA), 2014 for Compliance Officers to regularly meet and share ideas on how best to optimally perform their functions and promote standards of excellence for Compliance Officers, thereby constructively impacting the pension industry. It is therefore imperative that Compliance Officers discharge their statutory roles with the required professionalism, independence and integrity.”
PenCom boss said in an effort to promote a stable and sustainable pension industry, the Commission adopted zero tolerance for non-compliance and consultative supervisory philosophy in the issuance of guidelines and the review of existing ones to further promote sound corporate governance in the industry and ensure the security of the pension assets.
She expressed optimism that the forum will further enhance the capacity of each Compliance Officer towards the effective discharge of his/her functions even as she urged all of them to contribute positively at the forum assuring them of the Commission’s continued consultative philosophy, transparency and good corporate governance in the implementation of the Contributory Pension Scheme in Nigeria.
