Section 44 in The Pension Fund Regulatory and Development Authority (Point of Presence) Regulations, 2018
44. Assignment of functions.
(1)A point of presence shall not transfer or assign any of its functions or obligations specified under these regulations, to any person without the prior written consent of the Authority.(2)The point of presence desirous of assigning the functions shall apply to the Authority in the specified application providing complete details including the business plan of the entity to which the point of presence wishes to assign the functions and such form shall be signed by both the point of presence and the proposed assignee of functions. For the purpose of this regulation, such an assignee shall be called as point of presence-sub entity. The Authority may refuse or reject or impose any additional conditions as deemed fit by the Authority, at the time of approval of such an application by the point of presence seeking permission for assignment of functions. The Authority may impose or stipulate such terms and conditions, including the instructions on banking operations involving subscriber contributions while accepting such an application.(3)The eligibility criteria for such point of presence- sub entity for seeking registration from the Authority through the concerned point of presence shall be as follows:i. such an entity shall not be an individual and shall be a company registered under Companies Act, 1956 or Companies Act, 2013, or a society registered under Societies Registration Act, 1860 or a Trust created under Indian Trusts Act, 1882, a registered partnership firm and should be in the business of dealing with sale, distribution or advisory services of financial services products for commercial gain or working with a social motto of spreading the beneficial services to the citizens;ii. such entity shall apply to the Authority in the specified application form along with the recommendation and Certification of its intent by a registered point of presence along with a onetime registration fee of rupees five thousand only and if in the opinion of the Authority, the application is in order and serves the interests of the subscribers of pension schemes and National Pension System, it may register such entity as a point of presence-sub entity and allow it to carry on activities under pension schemes and/or under National Pension System, in accordance with these regulations and any other notifications, guidelines, circulars etc. issued by the Authority from time to time.(4)The liability of the point of presence for any acts of omission or commission, by the point of presence-sub entity in discharge of its functions, shall be joint and several in case of any liability arising out of such assignment, by the point of presence to point of presence-sub entity.(5)The charges payable to point of presence sub-entity provided under point of presence would be as per the contractual agreement between the point of presence and point of presence sub-entity and subject to the condition that the subscriber should not be charged beyond rates permitted by Authority for the particular service for a point of presence and issued through notifications, guidelines, circulars etc from time to time.(6)The Authority may cancel the approval granted to any such point of presence-sub-entity based upon the review of its performance in terms of number of new pension accounts opened, services rendered to the subscribers or if in the opinion of the Authority it is not in the interest of subscribers and or the objective of orderly development of Pension Sector and/ or National Pension System.(7)Such authorized point of presence sub-entity can be affiliated to more than one point of presence.(8)Such entities which are allowed to function as a point of presence sub-entity shall get itself registered with the central recordkeeping agency post approval from Authority, for activating its operations.(9)The approved point of presence-sub entity shall-(a)pay the fees as specified by Authority for registering as point of presence sub-entity;(b)abide by the Code of Conduct specified in this regulation for the point of Presence;(c)enter into an agreement with each of the point of presence(s) for specifying the scope of its authority, responsibilities and mutual liabilities arising out of transactions related to pension schemes;(d)comply with the rules, regulations and guidelines issued by Authority in relation to pension schemes;(e)keep and maintain the books and documents specified under rules, regulations and guidelines issued by Authority in relation to pension schemes;(f)comply with the Know Your Customer requirements specified or laid down by the Authority for pension schemes;(g)at all times maintain strict confidentiality with regard to all matters, documents, information or data already exchanged or to be exchanged in relation to any subscriber.(h)Any other conditions that may be specified or laid down by the Authority in the interest of subscribers or for orderly growth of pension schemes and National Pension System.(10)General Obligations: point of presence-sub entity shall-(i)provide subscriber registration forms to the applicant or prospective applicant for registration in pension schemes;(ii)receive subscriber registration form in such form as specified or laid down by the authority duly filled and signed by the subscriber along with the necessary documentation;(iii)ensure that prescribed Know Your Customer documents have been attached with the Subscriber registration form;(iv)ensure that the subscriber registration form submitted by the applicant is complete in all respects;(v)ensure that contribution is collected only by means of cheque or Demand Draft drawn in favour of "Name of the point of presence with whom such point of presence-SE is registered - collection account - National Pension System Trust". As Illustration, if the point of presence sub-entity is registered with State Bank of India then the instrument will be in favour of "SBI collection account - National Pension System Trust". Collection of National Pension System contributions by way of cash is not permitted for point of presence sub-entity;(vi)ensure that Service Standards prescribed for various operational activities are adhered to.Chapter-VII Power of Authority to Issue Clarification and Direction
