New pension fund managers to get higher commission: PFRDA

Pension fund regulator PFRDA would be heeding the demand of fund managers to revise commission structure when it invites requests for proposal (RFPs) to appoint new fund managers shortly, a top PFRDA official said.
Currently, the agency commission is fixed at a low of 0.01 per cent whereas the industry is demanding commission of 1 per cent.
There are seven pension fund managers and the regulator is in the process of appointing more through the RFP under which it will also allow existing managers to participate in the bidding process.
"We will soon float new RFPs, with revised commission structure for fund managers. We hope to do so within the next 15 days," PFRDA chairman Hemant Contractor said here while addressing a industry summit organised by Morningstar.

"Any aspirant, including the existing ones, fulfilling the eligibility criteria for being appointed as fund manager can apply and we will consider it accordingly after filtering out the applications," he added.
In its bid to allow new subscribers avail NPS (National Pension Scheme) online, the pension fund regulator has worked out an online account opening system with the use of Aadhar card. However, it had to postpone it after the Supreme Court earlier this month barred making mandatory use of Aadhar card for any purpose.
Now it has decided to do the KYC done with PAN-card based verification, he said, adding "we are likely to launch the new online NPS account opening system within 10 days.