FMAN to tap into PenCom assets for capital market growth

Fund Managers Association of Nigeria (FMAN) said it has commenced a strategic move aimed at repositioning the association to perform fund management role in the pension industry, which asset has grown to N4.9 trillion.

The President of the association, Michael Oyebola, while addressing participants during the FMAN meeting, in Lagos at the weekend, explained that with about N695 billion under management, made up of about N200 billion in the collective Investment Scheme and N495 billion being funds under management, FMAN may soon join the emerging market task force joint committee, which comprises of the Treasury in the UK and the Capital Market in Nigeria.

In view of the development, Oyebola explained that a general principle of conduct for asset managers were launched, in conjunction with the Chartered Financial Analyst (CFA) Society of Nigeria, FMAN and Pension Fund Operators Association of Nigeria (PENOP)  to  protect retail investors and ensure that they invest in assets classes that are regulated.

He added that the Security and Exchange Commission (SEC) would work to ensure that all members of FMAN adopt the codes of conduct in a near future.

He enjoined member firms to commence the practice of asset segregation- that is to separate its asset from clients’ asset before SEC begins to enforce compliance.

According to him, FMAN was striving to become a self-regulatory organisation with power to handle compliance, complaint and standardization issues between its members and the public.

He also urged firms with FMAN that are yet to meet the recapitalization target set by SEC to do so, because there is not likely to be an extension of the  deadline given.

The Association, according to him, is currently developing a customised platform for mutual funds distribution.

This, according to him, would serve as an open architecture platform that will enable members to distribute their mutual funds in more cost efficient means.

He added that with the approval of the acceptance of voters card as a KYC document, effort are on top gear to put together a mobile money platform that will address the various need of member firms.

Earlier, the new Director-General of SEC, Mounir Haliru Gwarzo said his tenure would focus on implementation of the capital market 10 year master plan.

Gwarzo, who was represented by the Director of Investment Management Department of SEC, Ms Mary Uduk,  explained that the master  plan, among others was aimed at ‘ making people understand who is who in the capital market’.