NATIONAL PENSION COMMISSION FRAMEWORK FOR REGIME OF SANCTIONS AND PENALTIES
Framework · Finance
A Framework specifies violations and sanctions for breaches of pension regulations. It targets licensed operators, employers, and compliance officers to enforce penalties consistently. This deters non-compliance and safeguards the pension industry's integrity.
NATIONAL PENSION COMMISSION FRAMEWORK FOR REGIME OF SANCTIONS AND PENALTIES
What Is This Policy?
PenCom's framework specifying the categories of violations, the sanctions applicable to each, and the process for imposing penalties on licensed pension operators and employers for breaches of the Pension Reform Act and PenCom regulations.
Who Does It Target?
Licensed PFAs and PFCs subject to regulatory sanctions Employers who violate pension remittance obligations PenCom enforcement and compliance officers Legal representatives of sanctioned parties
What Does It Aim to Achieve?
Deter violations of pension regulations through a clear and proportionate sanctions framework, ensure consistent enforcement, and protect the integrity of the pension industry.
Key Features
Sanctions Categories: Classifies violations into minor, moderate, and serious categories with escalating penalties. Financial Penalties: Prescribes specific fine amounts or percentage-of-asset penalties for common regulatory violations. Non-Financial Sanctions: Includes warnings, public censure, licence suspension, and licence revocation as non-financial enforcement tools. Due Process: Provides the right to be heard before major sanctions are imposed.
Current Status
Rollout Stage: Active Coverage: All PenCom licensees and regulated employers Beneficiaries: Pension contributors; pension system integrity Funding: Fines collected form part of a contribution to the pension protection fund
How to Access
Sanctioned parties may make representations before final decision Appeals against sanctions are handled through PenCom's internal review process then courts Application method: Sanctions applied by PenCom; no application required by affected parties.
Important Terms
Sanctions are published publicly in the interest of market transparency Repeat violations attract enhanced penalties Certain violations require mandatory prosecution regardless of fine payment
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.