Retirement Advisers which are banks, Non Banking Finance Companies (NBFCs) and body corporate providing distribution or execution services to their prospects shall keep their retirement advisory services segregated from other activities:
Provided that such distribution or execution services can only be offered subject to the following:
28 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
(a) The prospect shall not be under any obligation to avail the distribution or execution services offered by the Retirement Adviser.
(b) The Retirement Adviser shall maintain arm’s length relationship between its activities as retirement adviser and distribution or execution services.
(c) All fees and charges paid to distribution or execution service providers by the prospect shall be paid directly to the service providers and not through the Retirement Adviser.
(d) The Retirement Adviser shall not force the subscriber in any manner to avail their services as a condition precedent for subscribing to National Pension System or offer any tie up services without the approval of the Authority.
CHAPTER IV INSPECTION
25. Authority’s right to inspect. (1)The Authority may suo moto or upon receipt of information or complaint appoint one or more persons as inspecting authority to undertake inspection of the books of accounts, records and documents relating to retirement advisers for any of the following reasons, namely: -
(a) to ensure that the books of account, records and documents are being maintained by the retirement adviser in the manner specified in these regulations;
(b) to inspect into complaints received from subscribers or any other person, on any matter having a bearing on the activities of the retirement adviser;
(c) to ascertain whether the provisions of the Act and these regulations are being complied with by the retirement adviser;
(d) to inspect into the affairs of a retirement adviser, in the interest of the pension sector or in the interest of subscribers.
(2) In respect of banks offering services of retirement adviser, without prejudice to the powers of inspection as contained under sub-regulation(1), the Authority may request the Reserve Bank of India to exercise such powers, as may be required.