Pension regulator PFRDA will go in for a ‘fee-based’ model for ‘Retirement Advisors’ while finalising regulations for them in next few months, said Chairman Hemant Contractor.
The appointment of ‘retirement advisors’ is expected to ensure last mile outreach to NPS subscribers and help them in choosing fund managers and investment products.
“Increasingly important aspects of NPS such as choice of fund managers and investments are being left to the subscribers themselves. They need some sound advice on investing their funds. Retirement advisors will come in handy as they would give professional advice to people and help them in making the right choices,” Contractor toldBusinessLine here.
Asked whether the Pension Fund Regulatory & Development Authority (PFRDA) would allow commission or fee-based model for compensating the ‘Retirement Advisors’, he said that a fee-based model would be prescribed.
