PFRDA (Retirement Adviser) Regulations, 2016 – Proposed Amendments

(i) Compliance Officer

(ii) any other person who provide retirement advice on behalf of the non-individual
retirement adviser.

(a) Any intermediary or entity regulated by the Authority.

(b) Any other entity as may be specified by the Authority other than specified under sub-regulation (2).

(2) The following persons or entities shall not be required to obtain a certificate of registration subject to the fulfilment of the conditions stipulated therefor, —

(a) Any advocate, solicitor or law firm, who provides retirement advice to their clients, incidental to their legal practice;

(b) Any member of Institute of Chartered Accountants of India, Institute of Company Secretaries of India, Institute of Cost and Works Accountants of India, Institute of Actuaries of India or any other professional body as may be specified by the Authority, who provides retirement advice to his clients, incidental to his professional service;

(c) Any other entity as may be specified by
the Authority. Provided that such persons or entities shall comply with the general obligation(s) and responsibilities as specified in these regulations and shall be fully liable for any defaults, as provided under these regulations, notwithstanding that such persons or entities have not obtained or granted any certificate of registration under these regulations.

(2) The applicant or his authorised representative, if so required, shall appear before the Authority for personal representation in regard to processing and grant of registration or exemption where so applicable.

(1) The applicant shall intimate change in any information in the application furnished to the Authority immediately but not later than three working days of occurrence of such change.

(2) Notwithstanding the above, the Authority may require the applicant to furnish any further information or clarification or cure deficiency, within the time granted, in the absence of which application shall be
considered on its merits.

(3) The applicant or Key Personnel as the case may be, if so required by the Authority, appear in person while considering the application.

(4) While processing the application, the Authority may:

a) verify the documents, inspect the office space, and resources including technological capabilities which the applicant is required to fulfil; and

b) seek report from any agency which may have a bearing on the application

(a) whether the applicant is an individual, a body corporate or a registered partnership firm or society or trust registered under applicable law;”

The eligibility criteria required to be fulfilled by an applicant under these regulations for grant of registration shall be the following, namely, —

(a) In case of non-individual applicant,

(i) registered with and regulated by Reserve Bank of India, or Securities and Exchange Board of India, or Insurance Regulatory and Development Authority of India;

(i) possess a minimum net worth of Rupees Fifty lakh as on the last day of immediately preceding quarter.

(ii) registered under Goods and Service Tax Act, 2017.

(iii) fulfils the fit and proper person criteria as specified in Schedule V;

(iv) Key Personnel fulfils the qualification and other requirement under regulation 7 and fit and proper person criteria as

specified in Schedule V;

(i) fulfils the qualification and other requirement criteria under regulation 7;

(ii) fulfils the fit and proper person criteria as specified in Schedule V;

(iii) possess a minimum tangible net assets of Rupees one lakh as on the last day of immediately preceding quarter.

Authority shall be eligible to become
retirement adviser and vice-versa.

being a Graduate in any discipline, at all times, and;

An individual retirement adviser and key

personnel of non-individual retirement
adviser, shall possess the following minimum qualifications, at all times;

(1) Graduate in any discipline or having

professional qualification and post
qualification experience of at least three years in activities relating to provision of advice in financial products or securities or fund or asset or portfolio management;

Provided that such certification shall not be mandatory in the following cases:

(i) an Investment Adviser registered with Securities and Exchange Board of India under its regulations

(ii) [***]

(iii) any other cases as specified by Authority.

(a) National Institute of Securities Market; or

(b) any other organization or institution as may be determined by the Authority;

Provided that no certification shall be required with respect to the following:

(i) an Investment Adviser registered with Securities and Exchange Board of India;

(ii) An advocate, solicitor or law firm;

(iii) A member of Institute of Chartered Accountants of India, Institute of Company Secretaries of India, Institute of Cost and Works Accountants of India, Institute of Actuaries of India or any other professional body as may be determined by the Authority;

(iv) any other persons as may be determined by Authority.

(ii) Retirement Advisers who are individuals or carrying on proprietary concerns, upon registration shall provide security deposit in the form of bank deposit receipt or performance guarantee to the Authority, as may be determined by the Authority through issuance of appropriate notifications/ circular/  guidelines/ directions before commencement of its activities under National Pension System. The bank fixed deposit receipt or Performance Guarantee to be so submitted shall be valid for a period of six months beyond the original or renewed period of registration so granted. The registration granted is liable to be cancelled, if

such deposit is not received within the time stipulated by the Authority, unless extended.

(ii) The Authority on being satisfied that the applicant fulfils the requirements
specified in regulation 6 and regulation 7 shall send intimation to the applicant conveying acceptance of the application.

(iii) The applicant shall pay the registration fees as specified in Second Schedule within fifteen days of intimation.

(iv) The Authority upon receipt of
registration fees shall grant a certificate of registration in Form B as specified under First Schedule, subject to observance of such terms and conditions accompanying such certificate of registration

Provided where the Authority is of the prima facie opinion that registration out not be granted, it shall communicate the reasons for forming such an opinion and give the opportunity to explain why its applications should be accepted, within fifteen days of receipt of the communication from the Authority, to enable it to form a final opinion.

Provided further that where an application has been rejected on the grounds of being incorrect, false or misleading in nature or has omitted to disclose material facts, no fresh

applications for grant of Certificate of
Registration shall be considered for a period of one year from the date of rejection.

(a) the retirement adviser shall abide by the provisions of the Act and these regulations and features of National Pension System;

(a) the retirement adviser shall abide by

the provisions of the Act, rules, regulations, guidelines, circulars, directions, and
instructions issued by the Authority;

(a) fails to comply with any of the conditions subject to which the certificate has been granted;

(b) contravenes any of the provisions of the Pension Fund Regulatory and Development Authority Act, 2013, the regulations made thereunder and such other guidelines or directions issued by the Authority from time to time; or;

(c) fails to furnish any information relating
to his activities as retirement adviser, as required by the Authority;

(d) furnishes wrong or false information, or conceals or fails to disclose material facts in the application submitted for obtaining the certificate;

(e) does not submit periodical returns as required by the Authority;

(f) fails to resolve the complaints of the subscribers or fails to give a satisfactory reply to the Authority in this behalf;

(g) does not co-operate with any inspection
conducted by the Authority;

(h) acts in a manner detrimental to or against the interest of the subscriber or against public interest or does not promote orderly growth of National Pension System or violates the features of the said scheme;

(i) against whom any investigation has been commenced by any agency or authority in relation to activities of fraud or financial impropriety or any orders of restraint,

debarment, prohibition or like nature has been passed against it by any regulatory body or by the government or has been convicted for commission of any economic offences or involving moral turpitude by any court of law.

(j) Any other acts of commission or omission as may be specified by the Authority through notification or circulars or guidelines.

The upper ceiling of fee payable for on-boarding of a prospect under National Pension System shall be as determined by the Authority through issuance of appropriate notification/ circular/ guidelines/ directions, in that behalf. Payment of on-boarding fee by such subscriber will be applicable only upon completion of the registration process/ on-boarding of the subscriber and generation of his or her individual pension account under National Pension System.

For any subsequent services, the Retirement Adviser shall be entitled to collect charges from the subscriber, as may be determined in that behalf, by issuance of appropriate notifications, guidelines, circulars or directions by the Authority.

(1) The charges to be collected for

providing retirement advice shall be in accordance with guidelines, circulars issued by the Authority.

The fees in such cases shall be chargeable as per the written agreement between the prospect/ subscriber and the Retirement Adviser. Further, a Retirement Adviser shall ensure that fees charged to the prospects/ subscribers including the group of subscribers are fair and reasonable and commensurate to the services offered. All fee and charges collected shall be duly acknowledged by the retirement adviser by issuance of appropriate receipts for the service provided.

Where the Retirement Adviser sources the application from prospect, outside the territory of India and submits the same to the branch of registered Points-of-Presence, providing services under National Pension System in such territory, the on-boarding fee which may be collected by the Retirement Adviser, from the prospect, shall be limited up to two US$ or in equivalent currency.

The Retirement Adviser shall also be entitled to collect from the subscriber, service charges not exceeding one US $ per transaction or in equivalent currency, for any subsequent services under National Pension System, provided to such subscriber outside the territory of India, post the opening of his individual pension account.

(2) Any change in the compliance officer should be intimated to the Authority within 7 days.

(a) to ensure that the books of account, records and documents are being maintained by the retirement adviser in the manner specified in these regulations;

(b) to inspect into complaints received from subscribers or any other person, on any matter having a bearing on the activities of the retirement adviser;

(c) to ascertain whether the provisions of the Act and these regulations are being complied with by the retirement adviser;

(d) to inspect into the affairs of a retirement adviser, in the interest of the pension sector or in the interest of subscribers.

auditor or through its authorised
representative conduct an inspection or audit of the books, accounts, records, including the

call records and electronic records and
documents for any of the following reasons, namely: –

(a) to ensure that the books, accounts, records and documents are being maintained by the retirement adviser in the manner specified in these regulations;

(b) to inspect into complaints received from subscribers or any other person, on any matter having a bearing on the activities of the retirement adviser;

(c) to ascertain whether the provisions of the Act and these regulations are being complied with by the retirement adviser;

(d) to inspect into the affairs of a
retirement adviser, in the interest of the pension sector or in the interest of subscribers.

(a) requiring a retirement adviser not to provide retirement advice for a particular period;

(b) requiring the retirement adviser to refund any money collected as fees, charges or otherwise to the concerned subscribers along with the requisite interest and compensation which may be prescribed by the Authority. In case of any loss caused to the subscriber(s) by an act of commission or omission on the part of Retirement Adviser, the Authority may invoke the Performance Guarantee submitted by the Retirement Adviser and Retirement Adviser may have to compensate the subscriber(s) in addition to Authority initiating penal action keeping in mind the extent of violation and level of violation as per the provisions of the Pension Fund Regulatory and Development Authority Act, 2013 and the applicable regulations.

(c) prohibiting the retirement adviser from operating as a Retirement adviser for such period as may be specified.

adviser(s) or its authorized representatives, issue such directions as it deems fit for the orderly growth of National Pension System or the subscribers including,-

(a) requiring a retirement adviser not to provide retirement advice for a particular period;

(b) requiring the retirement adviser to refund any money collected as charges or otherwise to the concerned subscribers along with the requisite interest and compensation which may be prescribed by the Authority. In case of any loss caused to the subscriber(s) by an act of commission or omission on the part of Retirement Adviser, they may have to compensate the subscriber(s) in addition to Authority initiating penal action keeping in mind the extent of violation and level of violation as per the provisions of the Pension Fund Regulatory and Development Authority Act, 2013 and the applicable regulations.

(e) the retirement adviser,-

(i) goes into liquidation (other than for the

purposes of a reconstruction or amalgamation on terms previously approved in writing by the Authority);

certificate of a registration granted to a
Retirement Adviser is liable to be suspended, cancelled or withdrawn upon happening any of the following events, namely

(e) the retirement adviser,-

(i) goes into bankruptcy or liquidation;

authority

The key personnel of a non-individual which is registered as retirement adviser shall have the primary responsibility for ensuring the maintenance of appropriate standards of conduct and adherence to proper procedures by the body corporate.

1. For the purpose of determining as to whether any person is ‘fit and proper person’, the Authority may take into account any criteria as it deems fit, including but not limited to the following:

(a) integrity, honesty, ethical behaviour,
reputation, fairness and character of the person;

(b) the person not incurring any of the following disqualifications:

i. criminal complaint or information under section 154 of the Code of Criminal Procedure, 1973 (2 of 1974) has been filed against such person by the Authority and which is pending;

ii. charge sheet has been filed against such person by any enforcement agency in matters concerning economic offences and is pending;

iii. an order of restraint, prohibition or

debarment has been passed against such

person by the Authority or any other

regulatory authority or enforcement agency in

any matter concerning securities laws or

financial markets and such order is in force;

. recovery proceedings have been initiated

by the Authority against such person and are

pending;

i. an order of conviction has been passed

against such person by a court for any offence

involving moral turpitude;

ii. any winding up proceedings have been

initiated or an order for winding up has been

passed against such person;

iv. such person has been declared insolvent

and not discharged;

. such person has been found to be of

unsound mind by a court of competent

jurisdiction and the finding is in force;

. such person has been categorized as a

wilful defaulter;

iii. such person has been declared a fugitive

economic offender;

iv. any disciplinary actions or other measures

by any professional body or institution are in

force;

v. such person is disqualified under section

164 of Companies Act, 2013;

xii. any other disqualification as may be determined by the Authority from time to time.

2. Where a person has been declared as not fit and proper by an order of the Authority, such a person shall not be eligible to apply for any registration during the period provided in the said order or for a period of five years from the date of effect of the order, if no such period is specified in the order.

3. Where a retirement adviser or any of its key personnel, at any point of time ceases to satisfy the criteria under sub-clause(a) of clause (1) or incurs any disqualification or disability under sub-clause (b) of clause (1), its certificate of registration is liable to be suspended or cancelled, in accordance with the provision of these regulations.

Provided that non-individual retirement

adviser shall remove its key personnel,
ceasing to satisfy the criteria, under sub-regulation (1) immediately, and inform the

Authority of the action taken.