The National Pension Commission (PenCom) has issued a directive banning significant cross-shareholding among Licensed Pension Fund Operators (PFOs). Individuals or entities cannot hold five per cent or more equity in more than one PFO, including parents, subsidiaries, affiliates, family members, and spouses.
This policy aims to strengthen corporate governance, eliminate conflicts of interest, and protect pension assets. PenCom stated that overlapping ownership could harm transparency and accountability. Current shareholders have six months to divest excess holdings to comply.
Violations will result in the loss of voting rights and governance privileges, with ownership structures deemed void. Additionally, any shared services arrangements among PFOs must be conducted at arm’s length to maintain independence. Stakeholders are advised to review their shareholding structures to ensure compliance.
