Bunmi AdulojuThe National Pension Commission has directed licensed pension fund administrators to suspend further investment in commercial papers with immediate effect.by corporations to finance inventory, accounts payable, payroll, and other short-term liabilities.
According to NAN on Thursday, the circular was addressed to managing directors and chief executives officers of all LPFAs.PenCom warned the LPFAs to desist from investing in the affected portfolio pending the issuance of guidelines on the issuance of commercial papers by the SEC. “It has also observed that the issuing companies have engaged capital market operators as Issuing and Placing Agents to manage the issuance and placement of these commercial papers.“However, the commission has become aware that SEC, the regulator of the capital market, currently lack established rules and regulations governing the issuance of commercial papers.