The Pension Fund Regulatory and Development Authority (Pension Fund) (Fourth Amendment) Regulations, 2021

Apr 06, 2021 | by Avantis RegTech Legal Research Team

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Commercial Compliance

The Pension Fund Regulatory and Development Authority (PFRDA) on March 31, 2021 has issued the Pension Fund Regulatory and Development Authority (Pension Fund) (Fourth Amendment) Regulations, 2021 to further amend the Pension Fund Regulatory and Development Authority (Pension Fund) Regulations, 2015. 

The following amendment has been made under the Pension Fund Regulatory and Development Authority (Pension Fund) Regulations, 2015, namely: -

• In Regulation 13 which specifies Annual Fee, has been substituted, namely: -

“Every pension fund shall deposit with the Authority, by 10th day of subsequent month of each quarter or within ten days of grant of certificate of registration, the annual fee payable on quarterly basis, as specified in Schedule III or as may be determined by the Authority from time to time.”

• In Regulation 20 which specifies Investment management fee, the following Regulation 20(3) has been inserted, namely: -

“The investment management fee is exclusive of brokerage and custodian fee along with applicable taxes thereon. 

Provided that the brokerage shall be adjusted against scheme NAV, subject to maximum of 0.03%, inclusive of applicable taxes or as may be determined by the Authority from time to time.”

• In Schedule III, Part A which specifies amount to be paid as fee to the authority, the following “Annual Fee” has been substituted, namely: -

Annual Fee

As determined by the Authority from time to time, subject to minimum Rs.10,00,000/- per annum (Rs.2,50,000/- per quarter or part thereof).

Non-Refundable/ % of AUM: The amount of the Assets under Management shall be considered as on last day of preceding quarter

By 10th day of subsequent month of each quarter or within ten days of grant of Certificate of Registration, payable on quarterly basis.

• In Schedule VII, Paragraph IX (9) which specifies Accounting Policies, the following gas been substituted, namely: -

“The cost of investment shall include only the stamp charges and brokerage along with applicable taxes thereon. For privately placed debt instruments, any front-end discount offered to the pension fund shall be excluded from the cost of the investment.”

• In Schedule VII, Paragraph IX (11) which specifies Accounting Policies, the following gas been substituted, namely: -

“The Investment Management Fee is inclusive of all transaction-related charges except brokerage and custodian charges along with applicable taxes thereon. The Investment Management Fee is calculated on the daily assets managed by the pension fund. Fees payable to the Authority shall not be charged to the scheme.”

[Notification No- PFRDA/12/RGL/139/9]

 


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