…Initiative ‘ll boost equities market liquidity – SEC
The National Pension Commission (PenCom) has hinted of its plan to release new draft guidelines to Pension Fund Administrators (PFAs) for securities lending as part of its efforts to boost investment in the nation’s pension sector.
The commission’s Head of Investment Supervision, Mr. Ibrahim Kangiwa, who made the disclosure at the recently Nigerian Exchange (NGX) Limited’s lending workshop, in a statement indicated that the regulations and processes being developed in collaboration with other stakeholders would be unveiled by the end of the year.
According to him, the enactment of the Business Facilitation Act of 2023 empowered PenCom to advance guidelines aimed at facilitating securities lending.
The Divisional Head of Capital Markets at the NGX, Jude Chiemeka, while speaking during the virtual seminar with the theme ‘Business Facilitation Act 2023 as a catalyst for deepening Securities lending in Nigeria’, said that the amendments created new possibilities within Nigeria’s securities landscape, particularly for institutional investors like the PFAs.
He said: “In the light of this, NGX and PenCom will forge a close collaboration to deepen this space for the benefit of Retirement Savings Account (RSA) holders and the pension industry at large. This collaborative effort aims to foster the growth and development of the capital market in Nigeria and across the African continent.”
Earlier in goodwill message, the Director of Registration, Exchanges, Market Infrastructure, and Innovation at the Securities and Exchange Commission (SEC), Mr Abdulkadri Abass, stressed that capital market regulatory commission remained committed to upholding a market that is just, organised, and efficient, prioritising the safeguarding of investor interests.
Represented at the forum by a Senior Manager at SEC, Ms Franca Ebube, the Director noted that the Business Facilitation Act, which permits PFAs to partake in securities lending, would undoubtedly deepen the market and increase liquidity.
It would be recalled that on February 14, 2023, former President Muhammadu Buhari signed the Business Facilitation (Miscellaneous Provisions) Act, 2022 which led to amendments of Section 89 (2) of the Pension Reform Act, thereby allowing pension assets to qualify for securities lending, subject to guidelines issued by PenCom.
