PenCom Bars PFAs From Taking Brokerage Fees For Bonds

The National Pension Commission (PenCom) has barred pension fund administrators (PFAs) from receiving brokerage commission from Primary Dealer Market Makers (PDMMs)/Issuing Houses/Receiving Agents.

The directive was announced in a statement by PenCom’s Head of Investment Supervision Department, Farouk Aminu.

“Any PFA that wilfully negotiates or receives brokerage commission from PDMMs/Issuing House/Receiving Agents shall be sanctioned in line with the commission’s regime of sanctions and penalties,” the statement partly read.  

According to the pension regulator, the new directive implies that capital market operators duly registered by the Securities and Exchange Commission (SEC) will no longer earn incentive for services provided.

PenCom, however, noted that the directive is in line with SEC’s circular issued on July 27, 2019, which directed that only capital market operators should be paid brokerage fee/receiving agents’ commission.