FMDQ Collaborates With PenCom On Regulatory Supervision

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FMDQ OTC Securities Exchange one of the markets licensed by the Securities and Exchange Commission has formalised its partnership with the National Pension Commission with the signing of a Regulatory Supervision Collaboration Agreement.

The agreement according to the Director General of PenCom, Chinelo Anohu-Amazu will enable the Commission realise its investment objectives of safety of pension assets and maintenance of fair returns on investment

The DG also commended FMDQ on its positive impact and giant strides in the development of the Nigerian Financial System.

According to Mr. Bola Onadele. Koko, MD/CEO of FMDQ, This partnership will seek to achieve, among other things the Commission’s objectives (as outlined in the Pension Reform Act, 2014), through data access and visibility of its supervisees’ (Pension Fund Administrators (PFAs)) transactions on FMDQ; improved transparency of all PFAs’ transactions in the Nigerian fixed income market, as well as the money market through the applicable system(s).

It will further help to achieve 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.

Whilst delivering the special address of FMDQ Chairman, Ms. Daisy Ekineh, Independent Non-Executive Director at FMDQ, stated that, “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”.

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.

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