With 40 recommendations, four regulators and one consultation paper behind him, the Pension Fund Regulatory and Development Authority chairman D. Swarup spoke to Hindustan Times about his report on regulating advisers released on Wednesday. Excerpts:
On the recommendations
It has been done through thorough research, surveys and interviews with experts. There are 10 other chapters in the report which are basically research and they tell what is what is happening in the country and abroad. That is the base to the recommendations. It will be a part of the report that will be presented to the government.
On the India position versus global benchmarks
We spoke to regulators of developed nations and some emerging nations to see what they are doing in this regard and that helped in reaching the conclusions. I never got the feeling that we are behind, as these problems are present in most of the nations, consumers are not getting full information and he is being mis-sold. While what we are doing in respect of financial literacy has already been adopted by developed nations, what we are suggesting on investor protection is quite unique.
On trans-regulator acceptance of these recommendations
They were represented through their members in the committee and they have given their comments which have been incorporated and they agreed at that level.
On the probability of the government accepting these recommendations
I am quite optimistic that this should be agreeable to all regulators and most importantly the government which was also represented in the committee.
On a needless 18-month timeframe for all financial products to go no-load
We are assuming that the govt will take six months to consider this report and take in view the recommendation. One year is the time being given to insurance and other financial industries to adjust to the new regime as 3 million (30 lakh) people involved as financial intermediaries and so the manufacturers of the products and the agents have to be given time to adjust.