PFRDA brings pension funds underneath PMLA web

In a significant overhaul of its pension fund rules, pension regulator PFRDA has introduced pension funds inside the ambit of Prevention of Cash Laundering Act (PMLA), tightening the oversight on these entities.

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It has as a part of the newest amendments to its present pension fund rules launched an idea of ‘match and correct’ standards for Principal Officers of each the sponsor and the pension fund.

With the ‘match and correct’ norms, PFRDA has aligned itself with comparable norms already prevalent underneath SEBI for ‘match and correct’. It has additionally now launched particular rules on how web asset worth must be computed for pension fund schemes. Additionally, it has mandated the establishing of nomination and remuneration committee as a part of the board of pension fund. 

Additionally, each pension fund available in the market ought to have ‘pension fund’ as a part of its identify (for example one can’t have UTI Retirement Options as identify of Pension Fund).

Additionally, now the pension fund can be required to furnish compliance certificates to the regulator, sources stated. 

The newest PFRDA transfer to amend the pension fund rules comes within the wake of Finance and Company Affairs Minister in her final 12 months’s Finances speech directing regulators to evaluation their rules from the attitude of easing compliance burden.

Aided by raging bull market in equities and powerful curiosity from non -government sector, pension belongings (Nationwide Pension System and Atal Pension Yojana) have crossed ₹ 11 lakh crore. 

NPS took six years and 6 months to achieve the milestone of ₹1-lakh crore AUM after its implementation in 2009. It then took 4 years and 11 months to additional enhance AUM to ₹5-lakh crore. NPS AUM had doubled to ₹10-lakh crore in August 2023 in a span of simply 2 years and 10 months. There are ten licensed pension fund managers within the nation.

PFRDA Chairman Deepak Mohanty had expressed confidence that pension belongings will surpass ₹ 12 lakh crore by finish March 2024. 

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Already over 8 lakh new subscribers have joined NPS this fiscal. PFRDA is concentrating on 13 lakh new subscribers on the non-government sector this fiscal.