PFRDA has exempted Associate Financial Planners, those who have passed the retirement planning module from FPSB India, from obtaining the NISM-Series-XVII: Retirement Adviser Certification Examination to become a retirement adviser (RA).
FPSB India had introduced AFP certification for professionals wanting to upgrade their knowledge in financial planning. Retirement Planning is one of the four modules of CFP certification.
Earlier, PFRDA had allowed IFAs to distribute NPS by registering themselves as retirement advisers with the pension fund regulator. To distribute NPS, IFAs need to obtain a passing certification from NISM and apply for the retirement adviser license with the PFRDA.
By becoming RAs, IFAs can charge a consultancy fee of 0.02% of AUM from NPS subscribers. This fee ranges between Rs. 100 and Rs. 1,000. In addition, RAs can charge an onboarding fee of up to Rs. 120 per subscriber registration. They can also charge a fee on other services like Rs. 20 for each transaction or Rs. 100 annually. These charges have to be recovered directly from investors.
