1 month ago
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By Yinka Kolawole, with bureau report
The National Pension Commission (PenCom) has introduced a model to usher pension money administrators (PFAs) connected engagement successful securities lending and repurchase transactions (repos).
Securities lending is a transaction wherever securities are temporarily transferred from a lender to a borrower, typically successful speech for a interest oregon collateral, portion Repos are the merchantability of securities with a simultaneous statement to repurchase them astatine a specified terms connected a specified date.
Director of Surveillance Department astatine PenCom, A. M. Saleem, successful a circular said that reporting and disclosure of quarterly connection to PenCom see the worth of securities connected indebtedness (by plus class).
Saleem said the quarterly reports besides see a database of counterparties and exposures, creation and valuation of collateral, and income earned and fees paid.
For yearly reports to status savings relationship (RSA) holders, the manager said PFAs shall disclose securities lending and repo activities, gross earned, and cause arrangements.
According to Saleem, securities lending and repo positions indispensable beryllium intelligibly disclosed successful the notes to the fiscal statements of the fund,
He said PFAs shall disclose, successful some quarterly returns to the committee and yearly reports to RSA holders, the gross gross earned from securities lending and repo transactions.
“The full fees and expenses deducted, with a breakdown of each constituent (agent fees, custodial fees, operational costs),” helium said.
“The nett gross credited to the fund; the individuality of immoderate agent, lender, oregon 3rd enactment receiving a stock of lending revenue, immoderate affiliation betwixt the PFA and the cause lender, wherever applicable
The station PenCom guides PFAs connected securities lending, repurchase transactions appeared archetypal connected Vanguard News.
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