New Delhi, July 12 (IANS) The government Thursday issued revised guidelines for registering pension fund managers to manage the national pension system for the non-government and private sector.
Under the guidelines issued by the Pension Fund Regulatory and Development Authority (PFRDA), the earlier bidding process, wherein a pre-determined number of slots were bid for by the pension fund managers and the condition that fees charged by all players for managing the funds had to be uniform, has been done away with.
Eligibility criteria for registration as pension fund managers have been laid out and all interested players desiring to enter the pension industry can register as pension fund mangers subject to their fulfilling the eligibility criteria.
There is no limit on the number of fund managers.
Further, the fund managers are allowed to prescribe their own fee charges, subject to an overall ceiling to be laid down by the PFRDA.
"It is expected that this would provide for an economically viable business model for the pension fund managers attracting a fresh set of entrants into the pension industry, and the resultant competition would ensure market driven fee structures, which would work to the advantage of the pension subscribers," the finance ministry said in a statement.
Pension fund managers would also be expected to market the national pension system (NPS) to the potential subscribers, deciding their own marketing and distribution channels as per their business perceptions, it said.
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