India. Regulator Plans To Hike Fee Charged By NPS Fund Managers
Fund managers of the National Pension Scheme will soon be able to charge a higher fund management fee.
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A committee, comprising members of the Pension Fund Regulatory & Development Authority as well as representatives of the mutual fund industry, is finalising a proposal for a new fee structure for the fund managers of the NPS, Supratim Bandyopadhyay, chairman at the regulator, said at a virtual conference on Thursday.
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The committee will likely submit its report next week. It will be discussed the PFRDA’s board meeting in November, and once the proposal for the higher fee structure is cleared, “requests for proposal” will be floated and institutions can apply to be pension fund managers, said Bandyopadhyay.
Currently, the eight pension fund managers charge a flat fee of 1 basis point of assets under management. They are Aditya Birla Sun Life Pension Management Ltd., HDFC Pension Management Company Ltd., UTI Retirement Solutions Ltd., SBI Pension Funds Private Ltd., ICICI Prudential Pension Funds Management Co. Ltd., Reliance Pension Fund, Kotak Mahindra Pension Fund Ltd., and LIC Pension Fund.
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