Sources among the operators said many of the PFAs submitted their evidence of recapitalisation this week, as they stepped up efforts to scale the regulatory hurdle.
Industry operators, who spoke to our correspondent, said PenCom was investigating the capital raising activities of the PFAs.
This was meant to ascertain whether the funds were appropriately and legitimately sourced or raised.
Another source said, “The commission has been asking for evidence of recapitalisation even before the final date because it does not want the PFAs to revalue any assets as evidence of recapitalisation. They must present liquid cash or near cash assets.An operator, who spoke to our correspondent on condition of anonymity, said, “I can assure you that we met all the necessary requirements; most of our funds were diverted into ensuring we met it before the deadline.”
“Many of them are in a last-minute rush but when the date ends, the commission will not accept any document again.
“Even those PFAs that looked as if they would not make it, they have been bringing evidence this week so you cannot rule out any company now until PenCom finishes screening their documents.”
The Pension Fund Operators Association of Nigeria had earlier said about 11 PFAs met the new capital requirement of the National Pension Commission as of the beginning of 2022.
In a circular last April, PenCOm directed PFAs to raise their shareholders’ funds from N1bn to N5bn, giving them a 12-month transition period.
The commission argued then that its oversight function had shown that the required minimum capital was no longer adequate to meet the operational expenses of the PFA business.
The new capital base of N5bn had led some PFAs to consider mergers and acquisitions as the April 2022 deadline approached.
Ahead of the recapitalisation, PenCom recently disclosed it approved the acquisition of Investment One Pension Managers Limited by Guaranty Trust Holding Company Limited and subsequent change of name from Investment One Pension Managers Limited to Guaranty Trust Pension Managers Limited.
It also approved the acquisition of AIICO Pension Managers Limited by FCMB Pensions Limited; and the merger between Tangerine Pensions Limited and APT Pension Funds Managers Limited and the subsequent change of name of the merged entity to Tangerine APT Pensions Limited.
PenCom last week approved Norrenberger’s acquisition of IEI-Anchor Pension.