NATIONAL PENSION COMMISSION CODE OF CONDUCT FOR TRUSTEES
Code · Finance
A Code outlines the fiduciary duties and responsibilities of trustees managing closed pension schemes. It targets trustees, board members of approved schemes, and PFAs to ensure they act in beneficiaries' best interests. This maintains compliance with governance requirements.
NATIONAL PENSION COMMISSION CODE OF CONDUCT FOR TRUSTEES
What Is This Policy?
PenCom's code governing the conduct, fiduciary duties, and responsibilities of trustees managing closed pension fund schemes on behalf of beneficiaries.
Who Does It Target?
Trustees of closed pension fund administrator schemes Board members of Approved Existing Schemes PFAs managing defined benefit funds PenCom compliance officers
What Does It Aim to Achieve?
Ensure trustees fulfil their fiduciary duties, act in the best interests of beneficiaries, maintain independence, and comply with all PenCom governance requirements.
Key Features
Fiduciary Standards: Requires trustees to act solely in the interest of beneficiaries when making pension decisions. Conflict of Interest: Prohibits trustees from engaging in transactions that create personal benefits at the expense of beneficiaries. Competence Requirements: Sets minimum qualification and experience requirements for persons serving as trustees. Reporting Obligations: Requires trustees to submit periodic reports to PenCom on fund status and governance.
Current Status
Rollout Stage: Active Coverage: All closed pension fund schemes regulated by PenCom Beneficiaries: Pension scheme beneficiaries and contributors Funding: Trustee fees from pension scheme assets
How to Access
Trustees must be approved by PenCom before appointment Trustees must complete PenCom-mandated training Annual declarations of conflict of interest required Application method: Trustee approval applications submitted to PenCom.
Important Terms
Breach of fiduciary duty may result in personal liability for trustees Trustees may not delegate their decision-making responsibilities to third parties without PenCom consent Removal of trustees requires PenCom approval
Official Resources
Website: https://www.pencom.gov.ng Contact: National Pension Commission (PenCom)
Legal Framework
Issued under the Pension Reform Act 2014, which established the National Pension Commission (PenCom) and the Contributory Pension Scheme. Derives authority from PenCom's regulatory mandate under the Pension Reform Act and operates alongside the Investment Regulations for Pension Fund Administrators and the Guidelines for Pension Fund Operators.