JUST IN : PENCOM LIFTS BAN ON PFAS INVESTING IN COMMERCIAL PAPERS
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The suspension that the National Pension Commission imposed on Pension Fund Administrators for their investments in commercial papers has been lifted.
Following the Securities and Exchange Commission’s draft guidelines on the activities, the suspension was removed, according to a circular released by PENCOM on Tuesday.
The Head, Investment Supervision Department, PENCOM, Abdulqadir Dahiru, who signed the circular, said, “The commission has noted that the Securities and Exchange Commission has developed draft rules and an amendment to rule 8 (Exemptions) to regulate the issuance of Commercial Papers by its regulated entities.
“Accordingly, the SEC is addressing the commission’s concern about the role of non-bank IPAs in commercial paper transactions by bringing them within regulatory boundaries.
“Consequently, to facilitate capital raising and ensure continued market stability, the commission has lifted its restriction on LPFAs investing in commercial papers where capital market operators act as IPAs.”
In any case, as required by Section 2.9 of the Regulation on Investment of Pension Fund Assets, PENCOM advised Licensed Pension Fund Administrators to make sure that all commercial papers’ prospectuses and offer documents undergo the proper legal and financial due diligence prior to investment.
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