The Pension Fund Regulatory and Development Authority vide notification dated 9th February, 2024 has issued the Pension Fund Regulatory and Development Authority (Trustee Bank) (Amendment) Regulations, 2023.
The amendment provides that in the event of the trustee bank for pension fund failing to adhere to the service standards as provided under service level agreement or any guidelines issued by the Authority, whereby any loss or inconvenience is caused to the subscriber, trustee bank shall be liable to compensate the subscriber, in accordance with service level agreement or guidelines issued by the Authority, for this purpose. There shall be no requirement of any loss or inconvenience to be proved on the part of the subscriber.
The trustee bank shall take all measures necessary for prevention of fraud and develop and implement a fraud prevention and mitigation policy in accordance with the guidelines issued by the Authority, including,–
- Laying down internal controls to be followed and ensure that such controls are adequate and operating effectively; and
- Making provision for indemnifying the subscriber for any loss on account of fraud or negligence on the part of the trustee bank, which has been established.
