Dear All,
Recently we have been receiving mails from AMC's with regard to changes in the Self Declaration Format for advisors. Apart from the normal declaration the common New line that runs in all the format is as follows:
"In compliance with SEBI Circular no. SEBI/ IMD/CIR/No.4/168230/09 dated June 30, 2009, I/ we have disclosed to investors all the commissions (in the form of trail commission or any other mode) payable to me /us for the different competing schemes of various mutual funds from amongst which the scheme was recommended to our investors."
I would like to know whether this declaration will be practically possible. As you are aware there are multiple brokerage/trial being paid to distributors and it keeps changing month after month.
I think we need a good amount of discussion and a representation to Sebi/Amfi on this subject.
I request each one of the IFA to respond to this query. Do not submit your response at the earliest.
Regards
At Money Kare,
We Care for your Money
Your Professional Investment Advisors
Mobile No. 9841016902
24 comments:
Good Questions Srini. Only Time will answer you.
Ramesh Bhat
Srini u say do not submit ur reply early- reply to what to the blog or Self declaration compliance?
I have spoken to a few AMCs and they appreciate the problem.
We jhave 3 issues:
(a) Disclosure of income
(b) Confirmation that we have explained all schemes to investor
(c) Marketing FMPs without indicating yields and portfolio composition.
I am sue with some application of mind a suitable acceptable solution can be found by AMFI and sebi which os not put IFAs in a very vulnerable situaion. I suggest we do not submit the declaration in haste. Let us find ways and means to reach the authorities and make them hear our views.
EVEN HUSBANDS DO NOT DISCLOSE OR THE WIFE IS IGNORANT OF HER HUSBANDS INCOME. BUT WHY SEBI INSISTS TO DISCLOSE THE INCOME?
IS NOT ENOUGH TO SUGGEST THE IN & OUTS OF THE SCHEME?TO THE INVESTORS...
Dear Sriniji,
Atleast Five IFA Distributors from Each Zone and Ten IFA Galaxy Members will join together at one place and form an All India IFA Association on or before 30/4/2011.This All India IFA Sssociation will meet the AMFI/SEBI and then will solve all the problems of ours.
I request the IFA Galaxy Members to take immediate steps in this Regard. - SALEM V. KASINATHAN
A very good initiative by ifa galaxy. Thanks for your efforts. Let us collectively give our views expressing the practical difficulty and put it before the concerned authorities,
best regards,
babu
Bangalore
Yes, it is impossible to give such declaration. We hv to take it up collectively at all India level.This is the right time that IFA Galaxy Chapters are formed across india and co-ordinated at Regional and National level.With industry persons now at the helm at both SEBI and AMFI, we may succeed.
L.Kumaar - ARN-0037
SURE WE THE MEMBERS OF IFA GALAXY FORM A GROUP THROUGH INDIA , &REPERESENT SEBI/AMFI ABOUT THIS. KYD HAS BEEN GIVEN THEN WHAT IS THE NEED FOR SELF DECLERATION, TO AMCS? SELF DECLERATION!!!!! IS IT FOR THE CLIENTS OR MFS?
AGE & SALARY {COMMISSIONS} ARE THE SECRETS OF INDIVIDUAL. ALSO A PERSON CAN EARN LAKS& LAKS IN MARKETING...,BASED ON HIS CAPACITY IS IT GUD TO TELL THIS ALL TO CLIENTS?
Dear SrniG
Sriram ( Sivasri Premier ARN 19262)
it is not possible to give such declaration, becauce we do not know
what is our commissions.
K.sriram
Maybe SEBI should put the commission/trail matrix in their website and advertise to ensure all public will read thru the 10000 schemes and commission structures
This is typical govt babu ego clashes over each other and in the process of dominating each other they make the entire system untenable.
They are fighting for 0.4% and act as if they are worried about public money while they are unable to nab black money/ ALI no proof so far / and 2G loot. There are 100 more loots unreported in this country.
True to Parkinson's law the creativity of bureaucrats is busy as ever to create confustion/more departments/more forms.
Did anyone ask why KYC when pan number is unique? What is so different from pan application and kyc? Millions of people put to hardship at the whims of these babus.
Soon you will have another form to verify kyc+pan together and it is on its way called UID
Dear friends,
Can anybody enlightem me about the % of IFAs completed their KYD?
Most of the IFAs are out of business and few are living thru Trail of the past performance and this also will dwindle in course of time due to redemptions.
KRSowmyanarayanan-ARN-1789
Why should we?
Did SEBI, AMFI & AMC officials declare what salary, variables and other perx they receive.
This is an ideotic cercular and we have no other option but to sign it.
Self Declaration:
This is being asked only from MF ARN Holders and from nobody else.
Better we demand complete withdrawal of this rather than trying to improve upon it.
KRSowmyanarayanan-ARN-1789
Dear friends,
Sometime back I raised a point reg. delaration of dividends. When the distributable surplus only
be paid as dividend, why NAV should go down?
Anybody can clarify?
KRSowmyanarayanan, ARN-1789
Dear IFA's, let's join together and represent our plight to AMFI/SEBI. We have to take a call immediately to resolve this issue. I think IFA Galaxy can definitely play a vital role in this regard.
R.Ramesh
ARN34777
some times i feel that the people taking dicisions at the SEBI level are the ones like clerks in spite of all information that are avialable on the public domen they insist information and take decisions in a manner that they dont have access to any information Sic!
IN THIS INDUSTRY WE HAVE TO KEEP GIVING DECLARATIONS,ONLY BECAUSE SEBI WANTS IT,BUT LOGICALLY IT DOES NOT MAKE SENSE TO KEEP GIVING DECLARATIONS.
1] WE HAVE DECLARED EVERY YEAR THAT WE R HONESTLY DOING UR BUSINESS, OTHERWISE OUR COMMISSIONS R STOPPED,
2]NOW ONE NEW DECLARATION,IF WE DONT GIVE IT UR COMMISSIONS WILL BE STOPPED.
INSURANCE LOBBY IS VERY STRONG WHEREAS MF LOBBY MIGHT BE WEAKEST
The letters received time and again from the fund houses, with the brokerage structure for the quarters will have to be framed or put on the notice board of the IFA,s office and clients will be asked to have a look at the same and an agreement may be prepared for the client , where he affirms that they have read the same.Beyond that to expect them to go through our commission stts is nothing short of ridiculous.
A lot of the things done by the regulator have been impractical ,cumbersome and painful for the the IFAs.
The letters received time and again from the fund houses, with the brokerage structure for the quarters will have to be framed or put on the notice board of the IFA,s office and clients will be asked to have a look at the same and an agreement may be prepared for the client , where he affirms that they have read the same.Beyond that to expect them to go through our commission stts is nothing short of ridiculous.
A lot of the things done by the regulator have been impractical ,cumbersome and painful for the the IFAs.
Sunil S Bhagat
ARN-9646
Maybe SEBI should put the commission/trail matrix in their website and advertise to ensure all public will read thru the 10000 schemes and commission structures
This is typical govt babu ego clashes over each other and in the process of dominating each other they make the entire system untenable.
They are fighting for 0.4% and act as if they are worried about public money while they are unable to nab black money/ ALI no proof so far / and 2G loot. There are 100 more loots unreported in this country.
True to Parkinson's law the creativity of bureaucrats is busy as ever to create confustion/more departments/more forms.
Did anyone ask why KYC when pan number is unique? What is so different from pan application and kyc? Millions of people put to hardship at the whims of these babus.
Soon you will have another form to verify kyc+pan together and it is on its way called UID
Prasad PN
pnprasad05@gmail.com
Why The MF Advisors are treated like this??
Why not follow similer Discloser every were?? with every professionals ,corporates,doctors,
Ramesh Chordia
www.insuregain.com
Everybody in the industry knows the impracticality of disclosing all the commissions. AMC knows this, AMFI knows this and SEBI also knows. If we want to get our commission hasslefree, we have to complete the formalities.
I feel SEBI has become mad now a days. Whatever steps they try to implement is totally against the interest of the IFA community.I feel the top officials of SEBI want to eliminate the IFA community from the picture. It is very sad to note that both AMFI and AMCs keep mum on all SEBI actions. We have to note that the IRDA is not implementing these type of steps in the Insurance industry, where mis selling/wrong selling is onits peak. All our fate.
Regards,
RAGHUNATHAN,TRIVANDRUM
Being an IFA or Authorised Distributor is not an attractive occupation today. the MFs directly and banks as they hv customer-base have snatched away from IFAs major share of the business which is fast decreasing. the middleclass is losing int. in MFs.
Now SEBI assumes that the IFAs are cheats and they are to protect investors. the investors are not all ignorant and they feel the IFAs should take commission from MFs and not expect any service charge and investor investing through the IFA is an obligation done to the IFA.
SEBI is going on American pattern.
Let us consider on all aspects and not give self declaration in haste.
Let the MFs pay the IFAs sufficiently if they wish to procure business through them.
ARN 16132
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