PenCom introduces non-interest fund, issues operational framework
The National Pension Commission (PenCom) has introduced a Non-Interest Fund (Fund VI) and issued an Operational Framework for to provide investment portfolio choices to pension contributors and retirees.
This, the PenCom management said, is in furtherance of the
implementation of the Multi-Fund Investment Structure, which seeks to provide investment portfolio choices to pension contributors and retirees.
According to PenCom, the “Non-Interest Fund is a fund that complies with the provisions of Islamic Commercial Jurisprudence and any other established non-interest principles, as approved by the Financial Regulation Advisory Council of Experts (FRACE) or any other body constituted by the Central Bank of Nigeria and the Securities and Exchange Commission, from time to time”.
It added that the FRACE, has certified that the Operational Framework issued by the Commission complies with non-interest (Shari’ah) finance principles.
“All Pension Fund Administrators (PFAs) are required to create and maintain the Non-Interest Fund (Fund VI) for interested Retirement Savings Account (RSA) holders,” said PenCom.
SOURCE: THE SUN