Unlike what obtained under the repealed Pension Reform Act 2004 where the National Pension Commission (PenCom) is required to give at least 28 days notice of its intention to the Pension Fund Administrator (PFA) or Pension Fund Custodian (PFC) before revoking their licence, the period has now been reduced to seven days under the new Pension Reform Act 2014.
Specifically, Section 64 (2) of the Pension Act stipulates that “The Commission shall, before revoking any licence, give the Pension Fund Administrator or Pension Fund Custodian at least seven calendar days notice of its intention and shall consider any representations made to it in writing by the Pension Fund Administrator or Pension Fund Custodian within that period before the revocation.”
The notice shall specify the reasons for the revocation of licence.
The revocation of licence of a PFA or PFC shall not in any way prejudice the entitlements of any beneficiaries of the Retirement Savings Account under the Contributory Pension Scheme and other approved schemes.
Notwithstanding the provisions of the Companies and Allied Matters Act, PenCom shall in its revocation order, withdraw the powers of the board of the PFA or PFC over the pension funds and assets held or administered by the company and may appoint administrators with relevant qualifications who shall superintend the transfer of the assets and funds held or administered by the company and exercise the powers of the board where necessary in accordance with this Act.
Besides, PenCom shall cause the Retirement Savings Accounts being managed by the
PFA whose licence was revoked to be transferred to another PFA or PFAs as the case may be and transfer the pension fund and assets being held by a PFC whose license was revoked under to another PFC or PFCs as the case may be.
Again, the commission is further mandated to publish by notice in the Federal Gazette, the list of the PFAs or PFCs whose licences have been revoked.
For the benefit of better understanding, the commission may revoke a licence issued to a PFA or PFC, where the operator is in breach of any conditions attached to the licence issued to it, where the licensee is subject to an insolvency proceeding or where any event occurs which renders the PFA or PFC unable to manage the pension funds or take custody of the pension funds as the case may be; among others.
Source : Independent