PFAs Lack Adequate Information On Clients – PenCom | Independent Newspapers Limited
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PFAs Lack Adequate Information On Clients – PenCom

Posted: Jul 23, 2015 at 12:00 am   /   by   /   comments (0)

The National Pension Commission (PenCom) has affirmed that the licensed Pension Fund Administrators (PFAs) lack adequate information on their customers and this has been hindering the PFAs from rendering excellent services to their clients.

Head, PenCom’s Surveillance Department, Mohammad Datti said: “The Commission has observed the dearth of adequate information on clients with Pension Fund Administrators. This has continued to impact negatively on the ability of PFAs to provide service to clients including ability to pay clients as and when due, as well as to deliver quarterly statements on a consistent and timely manner.”

PenCom has therefore issued a circular to all licensed pension fund operators mandating the PFAs to establish a Client Familiarity Index (CFI) that will enable them build a database on each of their clients.

CFI, popularly known as Know Your Customer, is a term commonly used for customer identification process. It requires a client to fill a form with basic information such as name, address, date of birth, telephone numbers, e-mail addresses, etc, for identification purposes. This information enables the company to maintain contact with the client as well as effectively identify, verify and monitor them.

The PFAs are now required to develop a CFI form to be completed by new clients at the point of registration, while existing clients are also required to fill out the forms which should be updated after every three years through sales agents.

Among other things, the form is expected to capture client names; Date and Place of birth; Gender and Marital Status; Nationality, State of Origin and Local Government Area; Current Home address, Postal address, Permanent home address and proposed address after retirement; Name of Next of Kin; and Name of beneficiary (i.e. the person to be paid in the event of the client’s death).

Other information to be included in the CFI form are: Telephone numbers of Client and Next of Kin; Email address of Next of Kin; Name and Address of previous and current employer; RSA PIN.