Access Bank Sells its Pension Custodian Business
Access Holding Plc has disclosed that its banking subsidiary, Access Bank PLC has divested from Pension Custody business, Access Pension Fund Custodian Limited.
Access Holding Plc noted in a letter signed by its Company Secretary, Sunday Ekwechi and dated 18 May 2022, that Access Bank PLC has sold the entire share capital of Access Pension Fund Custodian Limited held by Access Bank Plc to First Pension Custodian Nigeria Limited.
Access Holding Plc further noted that it has received approval from the National Pension Commission (PenCom) and the Central Bank of Nigeria. Access bank ended by saying that it will update the market as appropriate, which could mean that there are more information coming.
In a related manner, FBN Holdings Plc has also disclosed via a letter signed by its Company Secretary, Adewale L.O Arogundade, dated 18 May 2022, that it has entered into a definitive agreement with Access Bank Plc for First Pension Custodian to acquire 100% Share Capital of Access Pension Fund Custodian Limited, held by Access Bank Plc.
This is clearly a divestment and even though the new minimum N5 billion capital requirement for Pension Fund Administrators (PFAs) does not affect Pension Fund Custodian (PFC), Access Holding Plc could be using the opportunity to divest from pension custodian business to move into pension fund management properly.
In addition, Access Holding Plc clearly has the capital requirement for a PFC. A company applying for license as a PFC must have a minimum paid up capital of N2,000,000,000 and shall be a licensed financial institution with a minimum net worth of N5,000,000,000 unimpaired by losses and has total assets of N125,000,000,000 or is wholly owned by a licensed financial institution with similar financial resources.
Pension Fund Custodians (PFCs) are responsible for keeping safe custody of pension assets on trust on behalf of contributors. The main functions of PFCs are to receive pension contributions on behalf of PFAs; settle transactions and undertake activities relating to the administration of pension fund investments on behalf of PFAs and to notify the PFA within 24 hours of the receipt of pension contributions from employers.
There are just four (4) Pension Fund Custodians (PFCs) in Nigeria and once this acquisition is completed, we will have only 3 PFCs remaining. Check out the PFCs in Nigeria HERE. Access Pension Fund Custodian Limited will be removed from the list once the acquisition is completed.
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