NATIONAL PENSION COMMISSION REGULATION ON VALUATION OF PENSION FUND ASSETS
Regulation · Finance
Regulations outline methods and standards for valuing pension fund assets. They target Pension Fund Administrators and independent valuers to maintain accurate assessments. This ensures fair market values that protect contributors' interests.
NATIONAL PENSION COMMISSION REGULATION ON VALUATION OF PENSION FUND ASSETS
What Is This Policy?
PenCom regulations specifying the methods, frequency, and standards for valuing the various asset classes held in pension funds managed by Pension Fund Administrators.
Who Does It Target?
Pension Fund Administrators and their investment teams Independent valuers appointed to value pension fund assets PenCom surveillance officers reviewing fund valuations External auditors verifying pension fund asset values
What Does It Aim to Achieve?
Ensure pension fund assets are valued accurately, consistently, and at fair market value to protect contributors' interests and enable meaningful performance comparison across PFAs.
Key Features
Valuation Methods: Prescribes specific valuation methods for each asset class: mark-to-market for quoted securities, discounted cash flow for unquoted instruments, independent appraisal for real estate. Valuation Frequency: Quoted securities valued daily; unquoted assets valued quarterly or at each material event. Independent Valuation: Illiquid and complex assets must be independently valued by qualified external valuers. Impairment: Assets that have materially declined in value must be written down promptly, not held at historic cost.
Current Status
Rollout Stage: Active Coverage: All pension fund assets under PenCom regulation Beneficiaries: Pension contributors; NAV accuracy Funding: PFA operational costs
How to Access
PFAs must apply the prescribed valuation methods consistently Independent valuers must hold professional qualifications acceptable to PenCom Valuation reports submitted quarterly with financial accounts Application method: Internal implementation by PFAs; valuation reports filed with PenCom.
Important Terms
Deliberate overvaluation of assets is fraudulent and attracts severe sanctions PenCom may commission independent verification of PFA valuations Valuation policies must be disclosed in fund financial statements
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.