What Fees can be Charged by an NPS Advisor from Subscribers?

Fee that can be charged by NPS Advisors from Subscribers

A Retirement Adviser dealing in NPS can charge three types of fee (i.e. on-boarding fee, services fee and advisory fees) from the subscribers to whom he/ she has given retirement advice in accordance with the fee scales permitted under PFRDA (Retirement Adviser) Regulations, 2016, as per details given below;

i. A Retirement Adviser is entitled to charge fees for facilitating on-boarding to National Pension System, subject to a maximum of Rs. 120.

ii. For any subsequent services, the individual Retirement Adviser is entitled to charge a fee of minimum Rs. 20 per transaction and maximum Rs. 100 per annum.

iii. The Retirement Adviser may also charge 0.02% advisory fee from any existing subscriber, on their assets under management (AUM) of National Pension System (NPS) or any other scheme regulated by the PFRDA, on the date of advice, subject to a minimum of Rs. 100/- and maximum Rs. 1000/- per annum, for providing advice to the subscribers.

Further, the advisory fee can be charged by Retirement Adviser only when the subscriber has signed an agreement with the Retirement Adviser for providing advice, wherein the lower and upper limits of advisory fee, as specified by the PFRDA is incorporated. Also, it may be noted that no advisory fee shall be charged at the time of on boarding of the subscriber for which on boarding fee of upto Rs.120/- is charged.

The fees are chargeable as per the written agreement between the prospect/ subscriber and the Retirement Adviser under advisory fee head as prescribed by PFRDA. The Retirement Adviser has to issue a receipt for each type of fee separately and can collect all charges upfront from the subscribers.

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