New Delhi: In order to boost the National Pension Scheme (NPS), the Pension Fund Regulatory and Development Authority (PFRDA) has relaxed norms for registration of pension fund managers to ensure greater competition by removing cap on the number of Pension Fund Managers (PFMs), reports PTI.
As per the revised guidelines, PFMs would have to market the NPS to the potential subscribers, deciding their own marketing and distribution channels as per their business perceptions, Finance Ministry said in a statement.
The new norms issued by PFRDA on the basis of the recommendation by GN Bajpai Committee, has done away with the bidding process for appointment of fund managers.
It has laid down the eligibility criteria for PFMs and also removed the limitation on the number of fund managers for for managing the retirement corpus under non-government and private sector segment. Henceforth, any eligible company can undertake the business of fund management under the NPS.
Under the revised norms, PFMs have been given freedom to fix their own fees.
"It is expected that this would provide for an economically viable business model for the PFMs 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 statement said.
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