IFSCA Notifies Pension Fund Regulations 2026 for IFSC Framework

Notification F. No. IFSCA/GN/2026/007; Dated: 30.03.2026

The International Financial Services Centres Authority (IFSCA) has notified the IFSCA (Pension Fund) Regulations, 2026, establishing a comprehensive framework for the registration, regulation, and supervision of Pension Funds in IFSC.

1. Objective of the Regulations

The regulations aim to:

• Promote long-term retirement savings
• Ensure a secure, transparent, and well-regulated environment
• Protect the interests of subscribers
• Maintain the integrity of the pension ecosystem

2. Mandatory Registration Requirement

• No entity can act as a Pension Fund unless it obtains a certificate of registration from IFSCA
• Applications must be submitted through the SWIT portal
• The application must be accompanied by prescribed fees and documentation

3. Governance and Key Managerial Personnel (KMP)

The regulations prescribe robust governance requirements:

• Minimum two KMPs responsible for:

1. 1. Fund management
   2. Risk management

• Appointment of a Compliance Officer (as a KMP):

1. 1. Responsible for overall compliance
   2. Reports directly to the Board

• The Board composition must include:

1. 1. At least four directors
   2. Minimum 50% independent directors

• All directors, KMPs, and controlling shareholders must satisfy the ‘fit and proper’ criteria at all times

4. Subscriber Flexibility and Rights

The framework ensures subscriber-centric features:

• Subscribers can:

1. 1. Decide the frequency and amount of contributions
   2. Switch Pension Funds up to two times per financial year

• Pension Funds may prescribe a minimum contribution amount (with prior approval of the Authority)

5. Innovative Product Features

• Pension Funds may offer a healthcare benefit option, allowing allocation of a portion of contributions to a dedicated healthcare savings account
• Details of such features must be disclosed in the Scheme Information Document

6. Disclosure and Transparency Requirements

Pension Funds must ensure:

• Availability of educational materials
• Clear disclosure of performance and scheme details
• Information is presented in a simple, accessible, and understandable format for subscribers

7. Conclusion

The IFSCA (Pension Fund) Regulations, 2026, establish a robust, investor-centric regulatory framework, balancing governance, flexibility, and transparency, and fostering the development of a trusted pension ecosystem within IFSCs.

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