FMDQ partners PenCom (towards improved governance) …as both sign Regulatory Supervision Collaboration Agreement Posted on: April 11, 2016

FMDQ partners PenCom (towards improved governance) …as both sign Regulatory Supervision Collaboration Agreement. As part of efforts geared towards the realisation of its corporate vision and agenda, FMDQ OTC Securities Exchange (“FMDQ” or “the Exchange”) has formalised its partnership with the National Pension Commission (“PenCom” or “the Commission”) through the co-signing of a Regulatory Supervision Collaboration Agreement at a brief Ceremony on Thursday, April 7, 2016, at the Commission’s offices in Abuja. This is indeed a landmark achievement as this partnership will serve to change the face of the Nigerian financial markets from the buy-side perspective towards investor protection, integrity of service, fair return on investments and ultimately the development of the nation’s economy.

In attendance to witness this landmark event were the Director-General of PenCom, Mrs. Chinelo Anohu-Amazu, Chair, Board Regulation and Risk Management Committee, FMDQ, Ms. Daisy Ekineh, Managing Director/CEO, FMDQ, Mr. Bola Onadele. Koko, key representatives of the Central Bank of Nigeria Banking Supervision and Financial Markets Departments and other key representatives from FMDQ and PenCom.

In her opening address, the PenCom DG acknowledged and commended FMDQ on its positive impact and giant strides in the development of the Nigerian Financial System, and noted that this Regulatory Supervision Collaboration Agreement executed with the Exchange will serve to enable the realisation of PenCom’s investment objectives of safety of pension assets and maintenance of fair returns on investment. According to the DG “this partnership which would grant PenCom online real time access to FMDQ’s trading system(s), will among others, promote increased transparency in trades, efficient pricing of transactions, higher professionalism of players in the fixed income markets and fair returns on pension fund investment, for the ultimate benefit of pension contributors and the Nigerian economy at large”.

Whilst delivering the special address by FMDQ, Ms. Daisy Ekineh, also Independent Non-Executive Director at FMDQ, highlighted, “this ceremony marks the formalisation of a partnership expected to be formidable and long-standing, as it will bring about integrity of service, assured investor protection and fair return on investments, serving to fundamentally change the way in which our financial markets operate to the benefit of the nation’s investors, in particular, the pension assets, and ultimately the Nigerian economy”.

According to Mr. Bola Onadele. Koko, MD/CEO of FMDQ, this partnership will seek to achieve, among others, the Commission’s objectives (as outlined in the Pension Reform Act, 2014), through data access and visibility of its supervisees’ (Pension Fund Administrators (PFAs)) transactions on FMDQ; improved transparency of all PFAs’ transactions in the Nigerian fixed income market, as well as the money market through the applicable system(s); capacity building sessions for relevant PenCom Staff on the use of the applicable system(s); and the development of performance benchmarks for fixed income asset classes: bonds (sovereign, sub-national and corporate), money market securities (treasury bills, commercial papers etc.) and fixed deposits.

FMDQ, in its unwavering commitment to support efforts to galvanise the development of the Nigerian economy remains resolute in promoting an efficient, transparent and well-regulated financial market, which will attract and retain investors (domestic and foreign). PenCom, via this Agreement, will be conferred membership on FMDQ as an Affiliate Member (Regulators), providing the Commission with benefits including but not limited to data access and market visibility rights over the market activities of the Commission’s supervisees within FMDQ and access to real-time pre- and post-trade prices on fixed income securities.

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