PenCom debunks claim of investment breach by Leadway in FBN Holdings

The National Pension Commission (PenCom) has debunked the claim that Leadway Pensure Limited did not breach investment regulation by investing pension funds in the equities of FBN Holding Plc.

According to a statement by the Pension Regulatory, equity investments in FBN Holdings made by Leadway Pensure Limited on behalf of the pension funds under its management “are in the name of the pension fund and belong to the RSA” and “cannot be appropriated or classified as shareholdings of any related party to the PFA”.

Mr Peter Aghahowa, head of corporate communications at PenCom said the clarification was important following several publications alleging breach of its regulation on investment of pension fund assets by Leadway Pensure in FBN Holdings equities.

“The commission categorically states that the allegations are not correct and must have been made based on the lack of understanding of the investment regulation issued by the commission.

“For the avoidance of doubt; the equity investments in FBN Holdings made by Leadway Pensure Ltd., on behalf of the pension funds under its management are in the name of the pension fund and belong to the Retirement Savings Account (RSA) holders.

“Therefore, the equity investments in FBN Holdings Plc., as stated cannot be appropriated or classified as shareholdings of any related party to the Pension Fund Administrators (PFA’s).

“Leadway Pensure Limited is not in breach of the Investment Regulation by investing pension funds in the equities of FBN Holding Plc.

“Records which can be confirmed from the Securities and Exchange Commission shows that the equity investments in FBN Holdings Plc are in the name of the pension fund on behalf of the RSA holders,” PenCom said.

According to PenCom, pension fund assets are managed by licensed PFAs and held in custody by Pension Fund Custodians (PFCs) on behalf of RSA holders and other beneficiaries of the Contributory Pension Scheme (CPS), in line with the provisions of the Pension Reform Act 2014 (PRA 2014).

“Because of the foregoing, PenCom reiterates that there was no breach of its Investment Regulation whatsoever and urged the general public to be guided accordingly,” it said.

The commission, however, restated its commitment to fulfilling its regulatory and supervisory functions as well as ensuring the safety of pension assets and the soundness of the pension industry.