The National Pension Commission (PENCOM) yesterday issued fresh guidelines on the organisational structure for Pension Fund Administrators (PFAs).
The new arrangement initiated following the significant growth in the size of pension assets and the changing dynamics of pension business in the country, covers pension funds in excess of N100 billion as well as the professional qualification and cognate experiences required for the appointment of persons into their boards and top management positions.
Under the new statutory guidelines issued by head of Surveillance Department, Mohammed Yola Datti, PFAs with funds of N100 billion and above are required to have a minimum of 11 departments, three of which should be under the managing director/chief executive officer's supervision.
The departments include: Contributions/Collections; Investment; Benefit Administration; Business Development/Relationship Management and Finance (two units, one each for Fund Accounting and the other for Company accounts).
Others include: Information Technology; Compliance; Risk Management; Internal Audit; Administration/Human Resources and Legal/Company Secretary.
The three departments expected to operate under direct supervision of the CEO as stipulated by the guidelines are: Legal/Company Secretary; Internal Audit and Compliance.
"All core operational departments should report to the managing director through executive directors. The core operational departments for this purpose are Contributions/Collections, Benefits Administration, Investment, ICT, Business Development/Relationship Management, Risk Management, Administration/Human Resources and Finance Department," Mr Datti said.
"Where a PFA has RSA Funds size of N100 billion and above, it must have two separate investment departments one each for the RSA Fund and other funds and the appointment of a chartered financial analyst to head each of the investment departments", he added.
Similarly, the guidelines states that "where a PFA has 10,000 or more RSAs in a state, the PFA must open a branch in that state which must meet the following requirements specified in the commission's circular for branch opening as well as have a benefit administration function comprising, service requirements; human resource requirements; and ICT requirements
Criteria
On the criteria for appointing the board and top management officers of the affected entities, the minimum requirements for the position of the managing director are 20 years post qualification experience, 15 of which should have been spent in the financial services sector and 10 at top management level.
For the position of the executive director, the minimum requirements are 18 years post qualification experience, 13 of which should have been spent in the financial services sector and seven at top management level. Heads of departments are expected to have 10 years post qualification experience, eight of which should have been spent in the financial services sector and four at top management level.
0 comments:
Post a Comment