Guidance to Retirement Advisers

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

मास्टर परिपत्र – सेवानिवृत्ति सलाहकारों को मार्गदर्शन

Master Circular – Guidance to Retirement Advisers

• Hindi Version (हिंदी संस्करण)
• English Version

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PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

MASTER CIRCULAR

PFRDA/Master Circular/2024/06/RA-01

Date: 27th November 2024

To All Stakeholders in the National Pension System

Madam/Sir,

Master Circular – Guidance to Retirement Advisers

1. This circular is issued in the exercise of powers conferred under sub-section (1) of Section 14 read with sub-section (2) clause (c) and (m) of Section 14 of the Pension Fund Regulatory and Development Authority Act, 2013 and Chapter II and III of the Pension Fund Regulatory and Development Authority (Retirement Adviser) Regulations, 2016 (as amended) (“hereinafter referred as PFRDA (RA) Regulations, 2016”).

2. This master circular consolidates the existing instructions on the subject of “Guidance to Retirement Advisers”. The list of underlying circulars consolidated in this Master Circular is furnished in Part V.

This circular is issued with the approval of the competent authority.

Yours faithfully,

(Ashish Kumar Bharati) General Manager

[Image omitted. See the official document.]

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PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

INDEX

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PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PART I- INTRODUCTION

1. Retirement Adviser means any person being an individual or non-individual, who for consideration, is engaged in the activity of providing retirement advice on the National Pension System (NPS) or any other pension scheme covered under the PFRDA Act, 2013 to prospects or subscribers or other persons or group of persons and includes any person who holds out himself as a Retirement Adviser, by whatever name called.

2. Retirement advice means activity relating to onboarding of prospects, advice on pension fund selection, investment allocation, portfolio management or risk profiling, which are properly recorded by the Retirement Adviser and have been undertaken for the benefit of the prospect or subscriber and shall include retirement planning.

3. This circular contains guidance to Retirement Advisers with regard to the application/registration fees paid to the Authority, charges to be collected from the prospects or subscribers, service standards to be followed, process of redressal of grievances and pre-condition for renewal of certificate of registration. The effective date of applicability mentioned in respective circulars would remain unchanged.

4. The instructions contained in the aforesaid Master Circular have been suitably updated by incorporating relevant circulars, issued as on date.

PART II - GENERAL GUIDELINES

1. The compliance obligation of the Retirement Advisers shall not be confined merely to the Master Circular but, also to the applicable laws and regulations.

2. This Master Circular shall take effect from the date of its issuance but shall be without prejudice to their (earlier issued circulars) operation and effect, for the period when they were in force until them being subsumed under the Master Circular. Based on the above caveat, Part V containing the list of circulars consolidated in the Master Circular shall stand rescinded with the issuance of the Master Circular, such that they are subsumed in the Master Circular and for all purpose and intent, remain operative, with no break of continuity.

3. Notwithstanding such rescission of any circular, upon their merger in the Master Circular, or otherwise, anything done or any action taken or purported to have been done or taken, or to be taken hereafter, under the circulars now rescinded (for the period of their operation) shall be construed to have been validly taken as if the said circulars are in full force and effect and shall remain unaffected by their rescission, in any manner.

4. The previous operation of the rescinded circulars or anything duly done or suffered thereunder, any right, privilege, obligation or liability acquired, accrued or incurred, any penalty, any order

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PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

passed, any violation committed, any investigation, legal proceedings pending in terms of the circular (now rescinded), shall be treated as if the circulars are in full force and effect, and shall remain unaffected by their rescission, in any manner.

PART III – Guidance to Retirement Advisers

1. Fee Structure of Retirement Advisers (RAs) to be paid to the Authority

1.1 Application Fees

Any applicant, whether in the Individual or non-individual category who desires to register themselves as a Retirement Adviser or to renew their registration as a Retirement Adviser, shall pay a non-refundable application fee along with applicable taxes and levies thereon, as stipulated below, to the Authority:

1.2 Registration/Renewal Fees

The applicant shall be issued a Letter of Acceptance once the eligibility criteria and Qualification and other requirements mentioned in Regulations 6, 7 and Form A of the PFRDA (RA) Regulations, 2016 are satisfied. After the receipt of the intimation from the Authority, the applicant shall pay registration /renewal fees along with applicable taxes and levies thereon, to the Authority within 15 days at the time of grant or renewal of certificate of registration. The below is the registration fee structure:

Note - The requirement of submission of Security Deposit as specified under regulation 8 of the erstwhile PFRDA (RA) Regulations, 2016 has been discontinued with the notification of amended PFRDA (RA) Regulations, 2016 (notified on 20.02.2024). Therefore, the Retirement Advisers, whether individual or non-individual category who registered with the Authority post amendment of PFRDA (RA) Regulations, 2016 (notified on 20.02.2024) are not required to submit security deposit as mentioned in the circular vide no. PFRDA/2018/39/RA dated 09.01.2018.

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2. Retirement Adviser Certification Examination

Any individual or key personnel of non-individual (as defined under Regulation 2(viiia) to be read with 2(vii) and 2(ixa)), acting or desirous of acting as Retirement Adviser under the PFRDA (RA) Regulations, 2016, shall obtain certification from the National Institute of Securities Markets (NISM) by passing the "NISM-Series-XVII: Retirement Adviser Certification Examination" to become eligible for grant of certificate of registration as a Retirement Adviser, besides fulfilling other terms and conditions mentioned in the regulations.

The possession of any further certification from the National Institute of Securities Markets (NISM) or any other organisation or institution shall be determined by the Authority from time to time.

3. Charges to be collected by Retirement Adviser from the subscribers

3.1 In the exercise of the powers conferred under Regulation 15 of the PFRDA (RA) Regulations, 2016, the following charge structure for Retirement Advisers on various NPS-related activities shall be followed:

Note: The new charge structure mentioned at point 3.1 shall be effective from the date of issue of this Master Circular and shall be subject to revision by the Authority from time to time. Further, it is to be noted that “Subsequent Transaction Charges” to be collected by Retirement Advisers – Individuals and Non-Individuals as mentioned vide circular PFRDA/2018/39/RA dated 09th January 2018 has been discontinued from the date of issue of this Master Circular.