Committee is set up for consolidation of regulating pension products
The Finance Ministry has set up a high-level committee to consolidate the regulation of pension products that is currently being done by three different watchdogs including the insurance and stock market regulators.
PFRDA should be the supreme body to regulate pension products
Pension products floated by insurance companies come under the purview of the Insurance Regulatory and Development Authority (IRDA) while those sold by mutual funds are overseen by the SEBI.
While the Pension Fund Regulatory and Development Authority (PFRDA) was set up with the intent of regulating all pension products, insurers and mutual funds continue to sell pension products outside its watch, creating confusion among consumers looking to build a retirement nest egg.
The Pension Fund Regulatory and Development Authority (PFRDA) is a pension regulatory authority which was established by Government of India in 2003. PFRDA promotes old age income security by establishing, developing and regulating pension funds and protects the interests of subscribers to schemes of pension funds and related matters.
The committee to be formed by the Department of Financial Services, would have representatives from all financial sector regulators — SEBI, IRDA, RBI and PFRDA.