PFRDA (Internal Audit of Custodian of Securities) Guidance Note-2019

Apr 26, 2019 | by Avantis RegTech Legal Research Team

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The Pension Fund Regulatory Authority (PFRDA) on April 08, 2019, has issued PFRDA (Internal Audit of Custodian of Securities) Guidance Note-2019, with a view to standardize internal audit of the Custodian of Securities for NPS and other Schemes regulated by PERDA.

Internal Audit is to be conducted on quarterly basis within 15 days of the next quarter.

Eligibility criteria for appointment as internal audit (Annexure A):

The audit may be conducted by Chartered Accountants, Company Secretaries or Cost and Management Accountants who have minimum 10 years of practice and who don’t have any conflict of interest with Central record keeping agencies and pension funds.

Minimum scope of the internal audit:

i.The internal audit should cover all aspects of Custodial operations and procedures.

ii.The internal audit report shall state the methodology adopted, deficiencies observed and consideration of responses of the management on the deficiencies.

iii.The report shall include summary of operation and the audit.

iv.The report shall comment on the adequacy of the system adopted by the custodian for compliance with the requirements of regulations and guidelines issued by PFDRA Act and investor grievance redressal.

 The Guidance Note has come into force with effect from April 01, 2019.

[Circular No. PFDRA/2019/9/SUP-CUST/1]

Click here to download the Circular.


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