Distributor Centre

  • Why is the AMFI (ARN) Registration important?
    • It is needed for identification purposes
    • It indicates that the individual is a certified Financial Advisor
    • The asset allocated & the application for the same are identifiable
    • It is used to compute the feasibility of the brokerage
  • What compliance regulations does the distributor have to follow?
    • Needs to ensure that his AMFI registration does not expire & is always valid
    • Needs to follow all circulars that are issued by AMFI & SEBI
    • Cannot claim any brokerage for his/her own investment
    • Cannot share brokerage with the client
    • Needs to submit the Self Declaration form to the AMC before the end of the financial year
  • What are the consequences of being Non Compliant?
    • Suspension of AMFI Certificate.
    • In case Self Declaration is not submitted to AMC before the end of the financial year, or within 3 months from the start of next financial year the distributor will face brokerage suspension till submission
  • What is brokerage and how is it paid?
    • Brokerage is the commission computed for services rendered as a distributor
    • Brokerage by the name of “UPFRONT” is paid for a fresh application or for further /new investment for the client by advisor
    • Brokerage by the name of TRAILFEE is paid for investments to be retained in a particular fund
    • Additionally, the Asset Management Company may incentivize the advisors for achieving Sales Targets
  • How can a distributor have a Nomination and what is the commission payable to Nominee?
    • The distributor can appoint a nominee for the brokerage received by him/her
    • The Nomination procedure is the same as the procedure for UNIT HOLDING
    • The commissions accrued till the date of death of the distributor are payable to Nominee
    • Any further purchases / switches that are made after the date of death do not attract commission
  • How does one change the existing broker code in the records?

    The following documents are required to process the change in Broker Code:

    • A letter is required by the client (investor)
    • A No Objection Certification from the advisor whose code needs to be changed
  • How does one change the Bank Mandate?

    The advisor needs to make available the following documents for a change in the Bank Mandate:

    • A letter from the Distributor for the change in Bank Mandate
    • Copy of a cancelled cheque.
    • A filled in & duly signed Updation Form