The Pension Fund Regulatory and Development Authority (PFRDA)
today lifted the cap on the number of fund managers and said they could charge
any fee subject to a limit.
Earlier, pension fund managers had to bid for a predetermined
number of slots in the New Pension Scheme (NPS) and charge a uniform fee. The
new system lays down the eligibility criteria for registration as fund
managers.
“There is no limitation on the number of fund managers,” a government release said.
“The managers are now allowed to prescribe their own fee
charges, subject to an overall ceiling to be laid down by the PFRDA.”
Finance ministry officials said it was expected to “provide
for an economically viable business model” attracting a fresh set of entrants
and resulting in price competition and lower fees.
Fund managers will be expected to market NPS to buyers
through their own marketing and distribution channels.
NPS has still not achieved any significant progress in the
private sector, and the industry was waiting for these guidelines.
The changes follow the recommendations of the Bajpai
Committee, set up by the PFRDA, to identify the reasons behind the slow
progress of NPS.
Courtesy: - http://www.telegraphindia.com/1120713/jsp/business/story_15722819.jsp#.UABJ-LUe6ac
