It is better than nothing. But who will charge, IFA or the AMC? If it is IFA then the statusquo. If AMC charges and pays to the IFA the better. KRSowmyanarayanan, ARN-1789
I think this is a bad move by SEBI. We should fight for our full rights and not settle for such peanuts. Just to gain that extra 50 rupees, I predict that few advisors will now unnecessarily ask investors to go for new folios everytime (instead of investing in existing folio)
The service charge on folio basis is irrespective of the amount on the folio,this is not a incentive or remuneration by any stretch of imagination,the regulator continues to view the MF agents as some cheap service
IT MIGHT BE BETTER BY FIXING ATLEAST SLAB LEVEL OF INVESTMENT LIKE RS 100 FOR UPTO 50000 INVESTMENT AND SO ON. BUT ATLEAST WE SEE SOME LIGHT IN THE DARK TUNNEL. IS THIS APPLICABLE FOR DEBT. PRODUCT ALSO, PLEASE CLARIFY
I think there is no base for such kind of provisions. Living in Mumbai even if I/my staff has to travel to client's place twice and to a fund house once, I will spend 100Rs on transportation itself. I think the distributors are matured enough to know what they can charge. The most welcoming move would be a variable entry load. Where the payment mechanism is taken care by AMC and quantum of charge is fixed between distributor and client. Or it should go the other way where there should be completely ZERO remuneration to discourage agents who only want to work on Trail commission.
The charges should be in percentage and slab wise increase, when the investment increases. Its not fare not to charge investment less than Rs.10,000/-. Instead of changing the regulations from time to time,the regulators should think about a progressive and positive scenario of the future of the industry / investor.
SEBI's move is useless.for 1 lakh to ask client Rs 100,whteher we are begger.when we say we are IFA there is no value to our advice or consultancy.SEBI dont we want MF Industry to flourish,they are begging their bowl infront of FII & NRI.They dont want retail money which is long term in nature.Mr.Sinha being MF industry man.knowning reality, day by day retail participation dwindiling still not able to take proper decision,we are growing market,not mature market to take such decision like entry load ban etc.WE hve no choice to continue charge client 2% unilitarly throughout India.When Inflation is 9% ( in actual sense) which is pinching IFA also what the hell is going to happen just charging RS 100 or 150 All SEBI Board people are blind or Intellectual Bankrupt.
As said by others, in places like CHENNAI, MUMBAI or even smaller towns, if the IFA has to move aronud for collecting or depositing or sending investor's documents or for further followup this fixed amount is not enough. a nominal percentage has to be fixed and it can be paid by the AMC as in Insurance sector. L.MUTHUKRISHNAN, ARN 10460, TIRUNELVELI, TAMIL NADU 627011.
The move is not in very good taste. The issue of entry load is better buried for ever. The more you scratch, more uglier the picture emerges. The damage in any case had been done. The industry should work sincerely to improve persepective of its offerings with the investing masses.
Kindly ref. to my earlier comment. I may add the following. Fixing a limit, upper or lower, is not going to help. When the minimum of purchase price itself is 5000/-, min. of 10000/- does not make sense. Tinkering with the brokerage structure of the IFAs is most discriminatory. No useful purpose will be served by discussing this and in fact no discussion at all necessay. Every financial institution, like Postal, insurance capital market broaker NBFC pays brokerage to its agent.The agent gets commission on his own investment. Then why not to IFAs? Why should any one punish the IFAs who brought the MF industry a viable and lucrative one? Why shd he not get commission on his own investment? Does it not constitute investment? Pl. pay what is due to IFAs. Pl take up the issue of this KYD and Annual declarations also.Is it enforced for other catagory of agents? I feel like a slave whenever I fill up the annual declaration form and KYD with my finger print. I am ashamed.
The fees allowed to be charged is too low. even a plumber or electrician get more per visit to the customer place. It is not the right way to treat investment advisors who advice for lakhs and crores of rupees.
SEBI has for last few years successfully worked and managed to drive out retail investors from stock market,now they are aiming to try and destroy MF industry,and they may succeed in next few years. It is very easy to destroy,but very difficult to build CB BHAVE and KV VAIDYANATHAN laid the foundation to destroy MF industry,history will remember them as villains
This is a bad move by SEBI.instead of this we,IFAs should offer service free of charge,as most of us are doing now !!!.Having driven majority of advisors from mktg MF post aug`2009,SEBI is making mockery of those still servicing MF.when all other financial products are commission based,still there is piece meal,half hearted & half baked approches are followed by the REGULATOR- in the name of investor`s benefit - in fixing optimum remunaration system to IFAs.It seems that every rule in the book of law is first & finally applied to MF only-which incidentally the most regulated & transparent fin.products in INDIA- Srinivas,ARN-78360
I believe, its a good move just to start with....and should not be constrained to end at this level. It should move on to address the ground level problems faced by the MF distribution fraternity. I strongly believe that the entry load regime is gone for ever. Instead of cribbing on the past issues, we should find and suggest ways to overcome the situation..
Why not we urge the concerned to consider increase in the exit load and in turn incentivise us..??
Why not we urge the concerned to introduce a variable 'distribution fee' loading mechanism....like 2% for any amount less than 10000, 1.5% for any amount between 10K-50K, 1% for any amount between 50K-1L, 0.5% for any amount between 1L-10L, and above 10L the fees may be finalised jointly by the investor and the concerned distributor...??
Happily 'Cutting a separate cheque' by the customer to us will remain a distant dream, as long as the existence of the phsychological barrier of, 'the firm belief of every Indian that they need not be advised in their own investment matters'...!!!
Lets move on...I welcome this step as it is in the right direction....
It is better to educate investors and make them understand the efforts a real professional distributor takes to build wealth for them. Investos are ready to pay. Transaction fee is peanut. The doctor gets fees for deciding what injection to be administered and not for injecting. SEBI is not under distributors' control, but the clients and efforts are.
Rental agent gets one month rental even the lease term is 11 months, real estate agent gets 1% to 2% for sale/purchase transactions, insurance agents gets 5% on simple endowment policies and it is better either variable entry load or let investor decide how much they want to pay. Now this Rs.100 rule makes more unprofessional. The person want to clean house charges Rs.250. Irrepairable damage has happened in 2009, now we are making it more unprofessional
23 comments:
It is better than nothing. But who will charge, IFA or the AMC?
If it is IFA then the statusquo. If AMC charges and pays to the IFA the better.
KRSowmyanarayanan, ARN-1789
I think this is a bad move by SEBI. We should fight for our full rights and not settle for such peanuts. Just to gain that extra 50 rupees, I predict that few advisors will now unnecessarily ask investors to go for new folios everytime (instead of investing in existing folio)
ARN-59082
The service charge on folio basis is irrespective of the amount on the folio,this is not a incentive or remuneration by any stretch of imagination,the regulator continues to view the MF agents as some cheap service
IT MIGHT BE BETTER BY FIXING ATLEAST SLAB LEVEL OF INVESTMENT LIKE RS 100 FOR UPTO 50000 INVESTMENT AND SO ON. BUT ATLEAST WE SEE SOME LIGHT IN THE DARK TUNNEL. IS THIS APPLICABLE FOR DEBT. PRODUCT ALSO, PLEASE CLARIFY
I think there is no base for such kind of provisions. Living in Mumbai even if I/my staff has to travel to client's place twice and to a fund house once, I will spend 100Rs on transportation itself. I think the distributors are matured enough to know what they can charge. The most welcoming move would be a variable entry load. Where the payment mechanism is taken care by AMC and quantum of charge is fixed between distributor and client. Or it should go the other way where there should be completely ZERO remuneration to discourage agents who only want to work on Trail commission.
Saurabh Mittal
9967067652
The charges should be in percentage and slab wise increase, when the investment increases. Its not fare not to charge investment less than Rs.10,000/-. Instead of changing the regulations from time to time,the regulators should think about a progressive and positive scenario of the future of the industry / investor.
The transaction charge should be percentage wise, not fixed as proposed. And it should be apart from service charge.
SEBI's move is useless.for 1 lakh to ask client Rs 100,whteher we are begger.when we say we are IFA there is no value to our advice or consultancy.SEBI dont we want MF Industry to flourish,they are begging their bowl infront of FII & NRI.They dont want retail money which is long term in nature.Mr.Sinha being MF industry man.knowning reality, day by day retail participation dwindiling still not able to take proper decision,we are growing market,not mature market to take such decision like entry load ban etc.WE hve no choice to continue charge client 2% unilitarly throughout India.When Inflation is 9% ( in actual sense) which is pinching IFA also what the hell is going to happen just charging RS 100 or 150 All SEBI Board people are blind or Intellectual Bankrupt.
chandrashekhar kulkarni
ARN-15259
As said by others, in places like CHENNAI, MUMBAI or even smaller towns, if the IFA has to move aronud for collecting or depositing or sending investor's documents or for further followup this fixed amount is not enough. a nominal percentage has to be fixed and it can be paid by the AMC as in Insurance sector.
L.MUTHUKRISHNAN,
ARN 10460,
TIRUNELVELI,
TAMIL NADU 627011.
SEBI - MOHAMMED-BIN-THUGLAK.
All it does is MUCH ADO ABOUT NOTHING.
After killing hundreds of IFAs now it is trying to give glucose.
Just watch the fun! What else can we do?
The move is not in very good taste. The issue of entry load is better buried for ever. The more you scratch, more uglier the picture emerges. The damage in any case had been done. The industry should work sincerely to improve persepective of its offerings with the investing masses.
Hope this will not invite multiple application forms for the sake of getting the incentive. AMC's have to take adequate care on the same.
THIS IS NOT FAVORABLE SCHEME FOR IFA.
AMC SHOULD CHARGE AND PAY TO IFA.THIS IS BEST.
HARSHIT SHAH
Kindly ref. to my earlier comment. I may add the following. Fixing a limit, upper or lower, is not going to help. When the minimum of purchase price itself is 5000/-, min. of 10000/- does not make sense.
Tinkering with the brokerage structure of the IFAs is most discriminatory. No useful purpose will be served by discussing this and in fact no discussion at all necessay. Every financial institution, like Postal, insurance capital market broaker NBFC pays brokerage to its agent.The agent gets commission on his own investment.
Then why not to IFAs? Why should any one punish the IFAs who brought the MF industry a viable and lucrative one? Why shd he not get commission on his own investment? Does it not constitute investment?
Pl. pay what is due to IFAs. Pl take up the issue of this KYD and Annual declarations also.Is it enforced for other catagory of agents? I feel like a slave whenever I fill up the annual declaration form and KYD with my finger print. I am ashamed.
The fees allowed to be charged is too low. even a plumber or electrician get more per visit to the customer place. It is not the right way to treat investment advisors who advice for lakhs and crores of rupees.
L.Kumaar
ARN 0037
will this fees is enough for travelling expense due to petrol hike
SEBI has for last few years successfully worked and managed to drive out retail investors from stock market,now they are aiming to try and destroy MF industry,and they may succeed in next few years.
It is very easy to destroy,but very difficult to build
CB BHAVE and KV VAIDYANATHAN laid the foundation to destroy MF industry,history will remember them as villains
IFA's would become beggers
This is a bad move by SEBI.instead of this we,IFAs should offer service free of charge,as most of us are doing now !!!.Having driven majority of advisors from mktg MF post aug`2009,SEBI is making mockery of those still servicing MF.when all other financial products are commission based,still there is piece meal,half hearted & half baked approches are followed by the REGULATOR- in the name of investor`s benefit - in fixing optimum remunaration system to IFAs.It seems that every rule in the book of law is first & finally applied to MF only-which incidentally the most regulated & transparent fin.products in INDIA- Srinivas,ARN-78360
The new charges are only regarding lumsum invesment.Regarding SIP it is silent.Kinds of TRANSANCTIONS Must be defined-IFA MADURAI
I believe, its a good move just to start with....and should not be constrained to end at this level. It should move on to address the ground level problems faced by the MF distribution fraternity. I strongly believe that the entry load regime is gone for ever. Instead of cribbing on the past issues, we should find and suggest ways to overcome the situation..
Why not we urge the concerned to consider increase in the exit load and in turn incentivise us..??
Why not we urge the concerned to introduce a variable 'distribution fee' loading mechanism....like 2% for any amount less than 10000, 1.5% for any amount between 10K-50K, 1% for any amount between 50K-1L, 0.5% for any amount between 1L-10L, and above 10L the fees may be finalised jointly by the investor and the concerned distributor...??
Happily 'Cutting a separate cheque' by the customer to us will remain a distant dream, as long as the existence of the phsychological barrier of, 'the firm belief of every Indian that they need not be advised in their own investment matters'...!!!
Lets move on...I welcome this step as it is in the right direction....
It is better to educate investors and make them understand the efforts a real professional distributor takes to build wealth for them. Investos are ready to pay. Transaction fee is peanut. The doctor gets fees for deciding what injection to be administered and not for injecting. SEBI is not under distributors' control, but the clients and efforts are.
Rental agent gets one month rental even the lease term is 11 months, real estate agent gets 1% to 2% for sale/purchase transactions, insurance agents gets 5% on simple endowment policies and it is better either variable entry load or let investor decide how much they want to pay. Now this Rs.100 rule makes more unprofessional. The person want to clean house charges Rs.250. Irrepairable damage has happened in 2009, now we are making it more unprofessional
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