Section 24 in Pension Fund Regulatory and Development Authority (Retirement Adviser) Regulations, 2016
24. Segregation of execution services.
- Retirement Advisers which are banks, Non Banking Finance Companies (NBFCs) and body corporate providing distribution or execution services to their prospects shall keep their retirement advisory services segregated from other activities:Provided that such distribution or execution services can only be offered subject to the following:(a)The prospect shall not be under any obligation to avail the distribution or execution services offered by the Retirement Adviser.(b)The Retirement Adviser shall maintain arm's length relationship between its activities as retirement adviser and distribution or execution services.(c)All fees and charges paid to distribution or execution service providers by the prospect shall be paid directly to the service providers and not through the Retirement Adviser.(d)The Retirement Adviser shall not force the subscriber in any manner to avail their services as a condition precedent for subscribing to National Pension System or offer any tie up services without the approval of the Authority.
