To enhance the reach of NPS through retirement advisors, PFRDA has increased the on-boarding fee of subscribers to Rs.200 from Rs.120 for retirement advisors with immediate effect.
However, this hike is too little too late, say experts. “Though the on-boarding fees has increased, it is only a marginal change. I do not think that it will lead to any shift in revenue of the individual retirement agents,” an expert said.
The advisory fee that the RAs can charge remains the same. Advisors can charge 0.02% of AUM subject to a minimum of Rs.100 and maximum of Rs.1,000 per annum.
In addition, PFRDA has reduced the new application fee and new registration fee for the corporate retirement advisors.
Now, other-than-individual retirement advisors have to pay Rs.1,000 as the new application fee instead of the earlier sum of Rs.5,000. The new registration fee is Rs.5,000 down from Rs.10,000.
The regulator has also decreased the security deposit for both individual as well as corporate RAs. The new security deposit of individuals and corporates is Rs.5,000 and Rs.50,000 respectively. Earlier, individuals and other than individuals had to pay a security deposit of Rs.10,000 and Rs.1 lakh respectively.
