Why PENCOM should retrace its directive

Centre for Consumer Concern (CCC) has frowned at the recent National Pension Commission’s (PenCom) directive prohibiting loyalty to retirement savings account holders.

CCC was unhappy that this came on the heels of the just celebrated World Customer Loyalty Week, celebrated in October every year. PenCom’s management claimed the decision was reached to put an end to “unhealthy competition” between Pension Fund Administrators (PFAs).

CCC viewed the decision as a regulator’s undue interference into PFAs’ management strategies in retaining customers. Executive Director, Wale Adekola, said loyalty programmes and rewards are special incentives to attract and retain customers.

“While I commend PenCom for laudable initiatives in the past, this recent directive is a setback in its consumer protection efforts,” he said, adding that businesses around the world take strategic steps to sustain their customers, and PFA’s should not be an exception.

“PenCom should not be seen to be subtly protecting certain PFA’s from others. Let the industry strive, and any PFA’s balance sheet that can sustain loyalty programmes should be left to do so.”

CCC charged PenCom to continue its focus on directives that protect consumers from processes that undermine quality of service from PFA’s.