PenCom to monitor PFAs transactions on FMDQ

The National Pension Commission, (PenCom) can now effectively monitor, through data access and visibility, Pension Fund Administrators (PFAs) transactions on FMDQ.

This was made possible when FMDQ OTC Securities Exchange formalised its partnership with PenCom through the co-signing of a Regulatory Supervision Collaboration Agreement at the Commission’s office in Abuja.

According to Mr. Bola Onadele Koko, MD/CEO of FMDQ, the partnership will also improve transparency of all PFAs’ transactions in the Nigerian fixed income market, as well as the money market through the applicable system(s); capacity building sessions for relevant PenCom Staff on the use of the applicable system(s); and the development of performance benchmarks for fixed income asset classes: bonds (sovereign, sub-national and corporate), money market securities (treasury bills, commercial papers etc.) and fixed deposits.

Present at the ceremony were the Director-General of PenCom, Mrs. Chinelo Anohu-Amazu, Chair, Board Regulation and Risk Management Committee, FMDQ, represented by Ms. Daisy Ekineh, FMDQ, Managing Director/CEO, FMDQ, Mr. Bola Onadele Koko, key representatives of the Central Bank of Nigeria Banking Supervision and Financial Markets Departments and other key representatives from FMDQ and PenCom.

In her opening address, the PenCom DG acknowledged and commended FMDQ on its positive impact and giant strides in the development of the Nigerian Financial System, and noted that the regulatory supervision collaboration agreement executed with the Exchange will serve to enable the realisation of PenCom’s investment objectives of safety of pension assets and maintenance of fair returns on investment.

Whilst delivering the special address of FMDQ Chairman, Ms. Daisy Ekineh, Independent Non-Executive Director at FMDQ, stated, “This ceremony marks the formalisation of a partnership expected to be formidable and long-standing, as it will bring about integrity of service, assured investor protection and fair return on investments, serving to fundamentally change the way in which our financial markets operate to the benefit of the nation’s investors, in particular, the pension assets, and ultimately the Nigerian economy”.

Ekineh said that FMDQ, in its unwavering commitment to support efforts to galvanise the development of the Nigerian economy remains resolute in promoting an efficient, transparent and well-regulated financial market, which will attract and retain investors (domestic and foreign).

PenCom, via this Agreement, will be conferred membership of FMDQ as an Affiliate Member (Regulators), providing the Commission with benefits including, but not limited to data access and market visibility rights over the market activities of the Commission’s supervisees within FMDQ and access to real-time pre- and post-trade prices on fixed income securities.

For PenCom, the regulator and supervisor of the Pension Industry in Nigeria, this partnership which would allow it online real time access to FMDQ’s trading system(s), will among other things promote increased transparency in trades, efficient pricing of transactions, higher professionalism of players in the fixed income markets and fair returns on pension fund investment, for the ultimate benefit of pension contributors and the Nigerian economy at large”.

In a joint statement issued by PenCom and FMDQ at the end of the ceremony, the partners stated that the agreement is indeed a landmark achievement as this partnership will serve to change the face of the Nigerian financial markets from the buy-side perspective towards investor protection, integrity of service, fair return on investments and ultimately the development of the nation’s economy.