The National Pension Commission (NAICOM) has adopted a risk-based supervision approach to promote better risk management in pension sector of the nation’s economy.

Acting director-general, PenCom, Mrs. Aisha Dahiru-Umar, who stated this at the Compliance Officers Forum held in Uyo, Akwa-Ibom State recently, disclosed that the commission moved to a more risk based approach to supervising pension operators by aligning its supervisory framework with that of the Financial Services Regulation Coordinating Committee (FSRCC).

Stating that risk management is essential to the growth and credibility of the pension industry, he added that, adherence to the ethics and professionalism of the pension sector will limit exposure of operators to risk.

“In an effort to promote a stable and sustainable pension industry, the Commission adopted zero tolerance for non-compliance and consultative supervisory philosophy in the issuance of guidelines and the review of existing ones to further promote sound corporate governance in the industry and ensure the security of the pension assets,” she said.

Noting that PenCom had recently released the framework and guidelines for the implementation of the Micro Pension Scheme, which is targeted at increased participation of employees in the informal sector, he stressed that the Multi-fund structure and revised guideline for Fund Accounting as well as revised Circular for Branch opening and Service Centre by PFAs, were meant to further develop the industry to enviable height.

Read more @Leadership