The Pension Fund Regulatory and Development Authority (PFRDA) has issued amended regulations for Trustee Bank and Central Recordkeeping Agency to protect National Pension System subscribers from fraud and reduce compliance costs. The amendments were notified on February 9, as per a statement from the Finance Ministry.
The Trustee Bank (TB) regulations have been simplified and strengthened to implement fraud prevention and mitigation policy, provide compensation to subscribers, and streamline application processes. The Trustee Bank manages pension funds in accordance with National Pension System provisions.
Additionally, the Central Recordkeeping Agency (CRA) regulations have been amended to enhance governance in line with the Companies Act, 2013, and increase disclosure of information.
Key amendments include the implementation of fraud prevention and mitigation policies by the CRA, inclusion of CEO certification in the annual report, and the introduction of criteria for a ‘fit and proper person’ for CRA and its key personnel. These changes aim to simplify processes and reduce compliance burdens.
The PFRDA’s amendments are designed to protect the interests of National Pension System subscribers, reduce compliance costs, and enhance the ease of doing business. The new regulations will contribute to a more secure and efficient pension system.
Overall, the amendments aim to strengthen the regulatory framework and provide greater security for pension fund subscribers while reducing the burden of compliance. This will result in a more robust and streamlined pension system with enhanced protection against fraud.
