The National Pensions Regulatory Authority (NPRA) has assured that trustees whose pension funds are in the custody of uniBank are safe.
The Bank of Ghana (BoG) last week announced that uniBank was insolvent and facing liquidity challenges, hence KPMG has been directed to take over the bank.
The announcement has caused some tension among customers of the bank, despite assurances from the central bank that depositors’ funds are safe.
But in a press in statement copied to Citi Business News, the NPRA maintained that “Pension Funds in custody of the bank are not affected by the appointment of an administrator, KPMG”.
It explained that, the National Pensions Act, 2008 (Act 766) as amended, anticipated events such as these, hence made special provisions for such takeovers in section 209 (1 and 2) of the law.
It pointed out that “Despite the provisions of any other enactment, pension funds or assets kept with a custodian under this Act shall not be used for the payment of claims of a custodian’s creditors in the event of liquidation of the custodian”.
“In the case of winding up, liquidation or cessation of business of the custodian or any or all of its shareholders, the pension funds or assets in the custody of the custodian shall not be seized or be subject to execution of a judgment debt or from transfer to another custodian,” it added.
The statement further assured stakeholders, especially Trustees who hold bank securities that all the necessary engagements are being held to ensure that pension fund assets are safe guarded.
“The Authority shall not renege on its mission of ensuring retirement income security,” it said.
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By: Lawrence Segbefia/citibusinessnews.com/Ghana