**Executive Summary**
This document summarizes the stakeholder and public responses to the proposed amendments to the PFRDA (Trustee Bank) Regulations, 2015, as notified in the Gazette of India on February 9, 2024. It addresses concerns and suggestions regarding disclosure of information, submission of compliance certificates, payment of compensation to subscribers, and director interest disclosures. The document clarifies and provides responses to the comments received.
**Key Points / Main Content**
* **Disclosure of Information**
* Stakeholder requested seven “working days” to be considered instead of seven “calendar days” for submitting changes.
* PFRDA response: Calendar days were preferred for uniformity and clarity, as working days can vary.
* **Submission of Compliance Certificate**
* Stakeholder required clarification regarding ‘resolution remarks on its Board’s observations’.
* PFRDA response: The regulation requires submission of a certificate evidencing compliance with eligibility conditions, to be placed before the board, and submitted with observations and explanations to the Authority within 60 days of the end of the financial year.
* **Payment of Compensation**
* Stakeholder requested equal representation for both parties regarding compensation to subscribers.
* PFRDA response: The regulation mandates compensation without requiring proof of loss or inconvenience if the Trustee Bank fails to meet service standards.
* **Disclosure of Director Interest**
* Stakeholder suggested discontinuing the requirement for the Trustee Bank to file the bio-data of all its directors along with their interest in other companies.
* PFRDA response: The regulation was retained for transparency and to avoid potential conflicts of interest.
**Impact Analysis**
**Stakeholder: Trustee Bank**
* **Impact:** They must adhere to the clarified regulations regarding timelines for disclosure of information, submission of compliance certificates, and payment of compensation. They must also continue to file the bio-data of all its directors along with their interest in other companies
* **Action Required:** Implement the clarified regulations and processes for compliance, including calendar day timelines for information disclosure, board review of compliance certificates, compensation procedures without proof of loss, and continued director interest disclosures.
Key Entities Referenced
PFRDA (Trustee Bank) Regulations, 2015: The core regulations being amended.
Pension Fund Regulatory and Development Authority: The regulatory body overseeing the trustee banks.
National Pension System Trust: Entity to which Trustee Banks file bio-data of directors.
Response to Stakeholder / Public comments on the proposed amendments to PFRDA (Trustee Bank) Regulations, 2015
[The Pension Fund Regulatory and Development Authority (Trustee Bank) (Amendment) Regulations, 2023 have been notified in the Gazette of India on 09.02.2024]
S. Response to stakeholder / public
Subject Matter Stakeholder / Public comments
No. comments
1 Disclosure of Information seven days may be considered as seven Calendar days have been preferred over
“The applicant shall submit to the Authority working days Working days considering uniformity and
any material changes in the information standardization across different regions or
furnished during pendency of the entities. It simplifies the understanding of
application, within seven days of timeframes as working days might vary based
occurrence of such changes.” on local customs, holidays, or norms. Further,
calendar days provide an unambiguous
measure of time.
2 Submission of a certificate evidencing Clarification required with respect to the point The regulation provides for submission of a
compliance with eligibility conditions. Such 'resolution remarks on its Board's observations'. certificate evidencing compliance with
certificate to be put up before board. eligibility conditions, Further, it also provides
“For this purpose, the trustee bank shall that such certificate shall be placed before its
submit a certificate evidencing compliance board and its observations, if any, along with
with eligibility conditions. Such certificate explanation thereon, shall be submitted to the
shall be placed before its board and its Authority, within sixty days from the end of the
observations, if any, along with explanation financial year or for such period determined by
thereon, shall be submitted to the Authority, the Authority.
within sixty days from the end of the
financial year or for such period determined
by the Authority”
Page 1 of 2Response to Stakeholder / Public comments on the proposed amendments to PFRDA (Trustee Bank) Regulations, 2015
3 Payment of Compensation to subscribers Clarification required with respect to the clause, The regulation concerns the payment of
by Trustee Bank as both parties should be given equal chance of compensation by the Trustee Bank in cases
“Provided that there shall be no requirement representation. where it fails to meet the service standards
of any loss or inconvenience to be proved outlined in the service level agreement or any
on the part of the subscriber.” guidelines issued by the Authority. According
to this agreement, compensation is already
specified for instances where timelines are not
met for specific activities. In these cases, the
compensation should be paid without
requiring proof of loss or inconvenience to the
subscriber.
4 “The Trustee Bank shall file with National If this can be discontinued To have transparency and to avoid potential
Pension System Trust conflict of interest, the regulation has been
(a) Bio-data of all its directors along with retained.
their interest in other companies within
fifteen days of their
appointment; and(b) any change in the
interests of directors at every six months.”
"Note: The information and statements provided in the above document are tentative, all concerned are advised to refer to the amendment to regulations
notified in the Official Gazette, for further guidance on the matter."
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