The Authority shall have the right to alter, modify and overrule any decision, action taken by the body or body corporate recognized under regulation 16
42. Power of Authority to issue directions—(1) Without prejudice to any order that may be issued under these regulations, the Authority may, in the interest of the subscribers or for the purpose of securing the proper management of retirement adviser , issue necessary direction which the Authority may deem fit and proper in the circumstances of the case:
Provided that before issuing any directions, the Authority shall give to the persons concerned, a reasonable opportunity of being heard:
Provided further that if the circumstances warrant that any interim direction is required to be passed immediately, the Authority may give to the persons concerned, a reasonable opportunity of being heard after passing the direction, without any undue delay.
HEMANT G. CONTRACTOR, Chairperson [ADVT-III/4/Exty./142] FIRST SCHEDULE FORM A Pension Fund Regulatory and Development Authority (Retirement Adviser) Regulations, 2016 [See Regulations 3 and 11] Application for Grant of Certificate of Registration/Renewal as Retirement adviser Pension Fund Regulatory and Development Authority, B-14/A,Chhatrapati Shivaji Bhawan, Qutab Institutional Area, Katwaria Saria, New Delhi-110016 INSTRUCTIONS 32 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
1. This form is meant for use by the applicant for grant of certificate of registration as a retirement adviser.
2. The applicant should complete this form, and submit it, along with all supporting documents to the Authority at its head office at New Delhi.
3. This application form should be filled in accordance with these regulations.
4. The application shall be considered by the Authority provided it is complete in all respects.
5. All information must be legible and all the pages must be numbered with signature/ stamp on each page of the form.
6. Information which needs to be supplied in more detail may be given on separate sheets which should be attached to the application form and appropriately numbered.
7. The application must be signed.
8. The application must be accompanied by an application fee as specified in the Second Schedule to these regulations.
1. GENERAL INFORMATION
(a) Name, address of the registered office, address for correspondence and principal place of business, telephone number(s), fax number(s), e-mail address of the applicant along with the documents
(b) Whether application is for registration/ renewal. Provide registration number if the application is for renewal of certificate.
(c) Name, direct line number, mobile number and e-mail of the contact person(s).
(d) Legal structure of applicant - Whether the applicant is an individual, a proprietor, body corporate (including company), partnership firm or limited liability partnership or society or trust.
(e) Whether the applicant is a bank /NBFC.
(f) Date and place of incorporation/ establishment, if any. If the applicant is incorporated outside India, details of such incorporation.
(g) Whether the applicant is engaged in retirement advisory services prior to making application under these regulations.
(h) Whether the applicant is registered with SEBI, RBI, IRDAI or PFRDA in any capacity. If so, details of such registration.
(i) Write-up on the activities of the applicant.
(For renewal application, provide details of existing retirement advisory services including number and type of subscribers, assets under advice, revenue, profitability, products/ retirement products on which retirement advice was provided, etc.)
(j) Details of the certification from the accredited institute as specified in regulations 7, where applicable.
2. DETAILS OF APPLICANT ( besides general information sought above Provide details of only the section applicable to you) I. In case applicant is a company:
1. Shareholding pattern and profile of the directors (Enclose identity proof and address proof of the directors).
2. Number of employees and agents of the applicant (hereinafter referred to as ‘representatives’) who render/ propose to render retirement advice under these regulations on behalf of the applicant.
3. Declaration by the applicant that its representatives currently comply with the certification and qualification requirements under regulation 7.
4. Declaration by the applicant that it shall ensure that its representatives comply with the certification and qualification requirements under Regulation 7 at all times.
5. List of associated companies registered with SEBI, RBI, IRDAI or PFRDA along with the registration number.
6. If applicant is a bank or NBFC, then copy of approval from RBI for undertaking retirement advisory services.
7. Net worth certificate by a chartered accountant, not more than six months old. Please note that membership number of the chartered accountant must be included in the certificate, II. In case applicant is a proprietorship firm, partnership firm or a limited liability partnership:
1. Name of proprietor, names and beneficial ownership pattern of the partners engaged/proposed to engage in retirement advice (Enclose identity proof and address proof of the partners).
2. Whether the aforesaid proprietor or partners have:
a. A professional qualification or post-graduate degree or post graduate diploma in finance, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science from a university or an institution recognized by the Central Government or any State Government or a recognised foreign university or institution or association; or ¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 33 b. A graduate in any discipline with an experience of at least five years in activities relating to advice in financial products or retirement products or fund or asset or portfolio management.
(Provide self- certified copies of supporting documents).
3. Copy of certification obtained by the aforesaid partners in accordance with regulation 7.
4. Declaration that the aforesaid proprietor or partners shall obtain fresh certification before expiry of the validity of the existing certification to ensure continuity in compliance with certification requirements.
5. Copy of assets and liabilities statement and certification of net tangible assets of the proprietor or partnership firm certified by a chartered accountant (not more than six months old at the time of filing of application). Please note that membership number of the chartered accountant must be included in the certificate.
III. In case applicant is a body corporate (other than company or limited liability partnership):
1. Shareholding pattern and profile of the directors (Enclose identity proof and address proof of the directors).
2. Whether the applicant is set up or established under an Act or the laws of the Central or State Legislature and whether the applicant is permitted to carry on of the activity of a retirement adviser (Enclose relevant extract of the relevant Statute/Act).
3. Number of employees and agents of the applicant (hereinafter referred to as ‘representatives’) who render/ propose to render retirement advice under these regulations on behalf of the applicant.
4. Declaration by the applicant that its representatives currently comply with the certification and qualification requirements under regulation 7.
5. Declaration by the applicant that it shall ensure that its representatives comply with the certification and qualification requirements under regulation 7 at all times.
6. Net worth certificate by a chartered accountant, not more than six months old. Please note that membership number of the chartered accountant must be included in the certificate.
IV. In case applicant is an individual
(1) Name, permanent address, address for correspondence and principal place of business, telephone number(s), fax number(s), e-mail address of the applicant along with the documentary proof.
(b) Whether application is for registration/ renewal. Provide registration number if the application is for renewal of certificate.
(c) Educational qualification along with supporting documents I,e. mark sheet, certificate etc.
(d) Professional qualification along with the supporting documents I,e. mark sheet, certificate etc. where applicable.
3. BUSINESS PLAN
1. Proposed business plan & means of achieving the same.
2. Process for risk profiling of the subscriber and for assessing suitability of advice.
4. DETAILS OF INFRASTRUCTURE
1. Details of office space, office equipment, furniture and fixtures, communication facilities, research capacity, research software for undertaking retirement advisory services.
2. Declaration that the applicant has the necessary infrastructure to effectively discharge the activities of a retirement adviser.
5. EXECUTION SERVICES
1. If the applicant is a body corporate, to explicitly mention whether the applicant proposes to offer distribution or execution services to its subscribers.
2. If yes, the applicant has to provide a declaration that the services are being offered through a subsidiary or separately identifiable department or division.
6. OTHER INFORMATION/DECLARATIONS/ REGULATORY ACTIONS.-
(a) Details of all settled and pending disputes in the last 5 years.
(b) Whether any previous application for grant of certificate made by any person directly or indirectly connected with the applicant has been rejected by the Authority; If yes, provide details of the same.
(c) Whether any disciplinary action or orders of restraint, debarment or prohibition of any orders of such like nature has been taken by the Authority or any other regulatory authority or government against any person directly or indirectly connected with the applicant under the Act or the regulations made there under in the last 5 years immediately preceding the date of application. If yes, provide details of such action.
(d) Whether the applicant/directors/promoters/ partners have been convicted/ indicted/involved in any economic offence 34 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] or involving moral turpitude in the last 5 years immediately preceding the date of application. If yes, provide details of the same.
(e) A credit report/ score from CIBIL for the applicant. (For applicants other than financial institutions & banking companies)
(f) Declaration that the applicant, its representatives and partners, if any, are fit and proper persons based on the criteria as specified by Pension Fund Regulatory and Development Authority (Retirement Adviser) Regulations, 2016;
(g) Declaration that the applicant shall not obtain any consideration by way of remuneration or compensation or any other form whatsoever, from any person other than the subscriber being advised, in respect of the underlying products or securities for which advice is provided to the subscriber.
(h) Any other information considered relevant to the nature of services to be rendered by the applicant.
7. DECLARATION STATEMENT I/We hereby agree and declare that the information supplied in the application, including the attachment sheets, is complete and true. AND I/ we further agree that, I/we shall notify the Authority immediately of any change in the information provided in the application.I/ We further agree that I/ we shall comply with, and be bound by the Pension Fund Regulatory and Development Authority Act, 2013 and the rules and regulations made thereunder including the Pension Fund Regulatory and Development Authority (Retirement Advisers) Regulations, 2016, and any guidelines/circulars/notifications/directions and instructions as may be issued by the Authority from time to time.
I/ We further agree that as a condition of registration, I/ we shall abide by such operational instructions/directives as may be issued by the Authority from time to time.
For and on behalf of (Name of the applicant) Authorized signatory/ Applicant (Signature) (Date and Place) FORM B Pension Fund Regulatory and Development Authority (Retirement Adviser) Regulations, 2016 [See regulation 9] Certificate of registration as Retirement Adviser.
In exercise of the powers conferred by sub-section 3 of section 27 of the Pension Fund Regulatory and Development authority Act, 2013 (23 of 2013), read with the regulations made there under, the Authority hereby grants a certificate of registration to _______________________________ act as a retirement adviser subject to the conditions specified hereunder and in the Act and in the regulations made thereunder II. The Registration Number of the retirement adviser is _____________ and shall remain valid until................
Date :
Place : New Delhi For and on behalf of Pension Fund Regulatory and Development Authority SECOND SCHEDULE Pension Fund Regulatory and Development Authority (Retirement Adviser) Regulations, 2016 [Regulation 9] FEES
1. Every individual applicant shall pay non-refundable application fees of five hundred rupees and every applicant other than individuals shall pay non-refundable application fees of five thousand rupees, along with the application for grant or renewal of certificate of registration.
2. Applicants which are individuals shall pay a sum of one thousand rupees as registration/ renewal fee at the time of grant or renewal of certificate by the Authority.
3 Applicants which are firms/body corporate/ registered trust /society shall pay a sum of ten thousand rupees as registration/ renewal fee at the time of grant or renewal of certificate by the Authority.
4. The fee referred to in paragraph 2 and 3 shall be paid by the applicant within fifteen days from the date of receipt of intimation from the Authority by a demand draft in favour of 'PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY' payable at New Delhi. or as specified by the Authority from time to time.
5. The quantum of fee under this schedule may be revised by the Authority from time to time by issuing appropriate circulars, directions or notifications. The Applicant shall be required to pay the applicable fee as notified by the authority.
THIRD SCHEDULE ¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 35 Pension Fund Regulatory and Development Authority (Retirement Adviser) Regulations, 2016 [See sub-regulation (14) of regulation 15] CODE OF CONDUCT FOR RETIREMENT ADVISER
1. Honesty and fairness A retirement adviser shall act with integrity, honesty, fairness and in the best interests of its subscribers and for orderly growth of National Pension System and pension sector at all times..
2. Diligence A retirement adviser shall act with due skill, care and diligence in the best interest of the subscribers and shall ensure that its advice is offered after thorough analysis and taking into account available alternatives.
3. Capabilities A retirement adviser shall have and employ effectively appropriate resources and procedures which are needed for the efficient performance of its business activities.
4. Information about prospects/subscribers A retirement adviser shall seek from its prospects or subscribers, information about their financial situation, investment experience and retirement objectives relevant to the services to be provided and maintain confidentiality of such information.
5. Information to its subscribers A retirement adviser shall make adequate disclosures of relevant material information while dealing with its prospects or subscribers.
6. Fair and reasonable charges A retirement adviser advising a prospect may charge fees, subject to any ceiling as may be specified by the Authority, if any. The retirement adviser shall ensure that the fee charged to the subscribers is fair and reasonable.
7. Conflicts of interest A retirement adviser shall try to avoid conflicts of interest as far as possible and when they cannot be avoided, it shall ensure that appropriate disclosures are made to the prospects and that the prospects are fairly treated.
8. Compliance A retirement adviser including its representative(s) shall comply with all regulatory requirements applicable to the conduct of its business activities so as to promote the best interests of subscribers and maintain integrity in its dealings..
9. Responsibility of senior management The senior management of a body corporate which is registered as retirement adviser shall bear the primary responsibility for ensuring the maintenance of appropriate standards of conduct and adherence to proper procedures by the body corporate.
A retirement adviser shall place the interest of the subscriber over his self interest in conducting his activities under the National Pension System A retirement adviser shall refrain from making any derogatory, disparaging remarks or statements against the National Pension system or the Authority or other intermediaries.
Fourth Schedule Individual Risk Profiling Sheet Name ___________ Gender M / F Age: ___________ Education: SSC HSC Graduate Masters Professionals (CA, CS, CMA etc.)
Profession Salaried (Govt/ Pvt.)
Professional/ Self employed Agriculture No. of Dependents ___________ Personal Life Insurance Y/N If Y, Amount of Covrage _______ Personal Health Insurance for Self and Dependents Y/N If Y, Amount of Coverage _______ City/Place of Residence: ___________ Residence: Owned/ Rented Income Details per annum 0-5 Lakh 5-10 Lakh 10-25 Lakh 25 Lakh or above Take Home Salary per month (in Rs.) ____________ 36 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] Approx. Monthly Expenditure per month (in Rs.) Rent _____ Food ______ Education ______ Health________ EMIs ____ Miscl.______ Monthly Investment Details (In Rs.) MFs/SIPs ______Bank Deposit/ FD/ RD_______ Shares/ Equity/ Bonds/ Debentures _____ Asset Details (value in Lakh) House _____ Car _______ Land ____ Gold, Jewellery, Bank Deposits etc. _____ Liabiilty Details (value in Lakh) House _____ Car _______ Personal Loan ___ Education Loan_____ Miscl. _______ Individual Risk Profiling On a scale of 1 to 5 kindly rate the following statements 1- Strongly Disagree; 2- Disagree; 3- No strong opinion/ Neutral view; 4- Agree; 5- Strongly Agree a. For investments I follow the dictum" Be Safe than Sorry" 1 2 3 4 5 „„ b. I find investment and other financial matters easy to understand. 1 2 3 4 5 c. My retirement savings would be enough to take care of post retiral expenses. 1 2 3 4 5 d. Investments in equity are safe. 1 2 3 4 5 e. I am concerned by the uncertaininty of the stock market. 1 2 3 4 5 f. Investments in Government Securities are safe 1 2 3 4 5 „g. I prefer the safety of keeping my money in the bank. 1 2 3 4 5 h. Risk and Return go hand in hand. 1 2 3 4 5 i. Inflation is going to be high in future. 1 2 3 4 5 j. High inflation is going to eat into my retirement savings. 1 2 3 4 5 k. I would need to supplement my retirement income by working post my reitirement. 1 2 3 4 5 l. Investments in Corporate Bonds are safe. 1 2 3 4 5 m. I generally look at the safest investments, even if it means less returns 1 2 3 4 5 „n. I associate the word ‘risk’ with the idea of ‘opportunity’. 1 2 3 4 5 Decleration:
I hereby declare that I have willingly provided the abovementioned information to the Retirement Adviser. However, the said information is confidential and for the purpose of estimating the Individual Investment Risk Profile only. It should not be utilized for any other purpose or study without my express permission and/or consent.
Signature Signature & Stamp Subscriber Retirement Adviser Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.