The Pension Fund Regulatory and Development Authority (PFRDA) issued this Master Circular to provide a comprehensive guide for Retirement Advisers (RAs). It consolidates existing guidelines regarding registration, compliance, fees, service standards, and grievance redressal mechanisms under the National Pension System (NPS) and other regulated pension schemes.
1. Role of a Retirement Adviser
A Retirement Adviser (RA) is an individual or entity that provides retirement planning services, including:
- Onboarding new subscribers to NPS.
- Advising on investment allocation and pension fund selection.
- Helping subscribers with account management and compliance.
2. Registration and Fees
To register as an RA, applicants must:
- Submit an application to PFRDA.
- Pay the registration fee: ₹1,000 (Individuals), ₹5,000 (Non-Individuals).
- Pass the NISM-Series-XVII: Retirement Adviser Certification Examination.
- Meet eligibility and compliance criteria.
Application Fee: ₹500 (Individuals), ₹1,000 (Non-Individuals).
3. Compliance and Renewal Conditions
- RAs must submit annual compliance reports to PFRDA.
- RAs must source a minimum number of NPS accounts within 3 years:
- Individuals: 36 accounts.
- Non-Individuals: 72 accounts.
- Renewal is subject to compliance with reporting, service, and performance standards.
4. Fees Charged to Subscribers
- Onboarding Charge: ₹400 (one-time).
- Advisory Fee: 0.02% of AUM (Min ₹250 – Max ₹2,000 per subscriber per year).
5. Service Standards and Grievance Redressal
- RAs must process onboarding and contributions within 1-2 days.
- Non-Individual RAs must appoint a Grievance Redressal Officer.
- Complaints must be resolved as per PFRDA guidelines.
6. Key 2024 Updates
- Security deposit requirement removed.
- Subscriber sourcing targets introduced for renewal.
- Stronger compliance monitoring by PFRDA.
Conclusion
The Master Circular provides structured guidance for RAs, ensuring regulatory compliance while enhancing service quality in the pension advisory ecosystem.
