Pension regulator warn operators against third party agreements

Operators in the pension industry seeking to go into agreement with third parties in respect of their business must get the approval of the industry regulator, the National Pension Commission (PenCom).

The warning recently issued by PenCom also requires that operators seek the approval of the Commission with respect to all technical agreements already executed with third parties.

PenCom in a circular signed by its Mohammad Datti, head, Surveillance Department, titled “Execution of Technical Agreement With Third Parties” reads the Commission has observed that some licensed pension fund operators execute technical agreements with third parties without obtaining the prior approval of the Commission.

Datti noted that this is of concern to the Commission especially as it has been observed that some clauses in these agreements are not in line with global best practice, and in view of this, all licensed operators are required to: Seek the approval of the Commission with respect to all technical agreements already executed with third parties; and henceforth seek the prior approval of the Commission before executing any form of technical agreement with third parties.

By: Modestus Anaesoronye