The National Pension Commission has extended the compliance deadline for its revised minimum capital requirements for Licensed Pension Fund Administrators and Pension Fund Custodians.
Existing operators now have an additional six months to meet the updated standards.
In an addendum to its earlier circular dated 26 September 2025 (Ref: PenCom/INSP/Surv/2025/1255), the Commission stated that the new compliance deadline is 30 June 2027, replacing the previous deadline of 31 December 2026.
“This Addendum provides additional clarifications to the revised regulatory capital requirements,” stated the addendum signed by A. M. Saleem, Director of the Surveillance Department at PENCOM.
The addendum introduces key changes to the capital computation framework:
Inclusion of Statutory Reserve Fund : Previously excluded, the SRF will now be recognized as part of Shareholders’ Funds for all categories of PFAs (A, B, and C), a move aimed at reducing capital adequacy pressures on operators.
Exclusion of Specific Funds from AUM Calculations: For Category A PFAs, certain funds will be excluded when determining the 1% capital surcharge based on Assets Under Management (AUM).
The excluded funds include: Fund V (Personal Pension Plan); Fund VII (Foreign Currency Fund); Approved Existing Schemes; and Additional Benefit Schemes.
These changes are designed to refine the capital surcharge framework and provide a more accurate assessment of risk exposure.
PENCOM reaffirmed its commitment to strict oversight, stating that it will continue to monitor compliance on a biannual basis through audited financial statements. Any shortfall in meeting the capital requirements must be corrected within 90 days of notification.
“The revised capital requirements remain effective immediately for new licenses,” the Commission emphasized.
The extension provides much-needed relief for existing PFAs and PFCs, many of which have been adjusting to the revised capital thresholds.
By including the SRF and refining AUM calculations, PENCOM is striking a balance between maintaining regulatory discipline and offering operational flexibility.
