Clarification on the Apr-11 Brokerage Payout

Dear Sir,
 
When I randomly checked April'11 brokerage statement of Reliance on Monday, I found that some payments were missing. 
 
I already told you as to what made me start looking at brokerage statements this month.
 
I told Chennai Reliance team about this on Monday and they promised to escalate and check this issue.
 
From the below mail, it is obvious that Reliance has blundered in making payments for many. Probably they should have received many complaints from people and companies who reconcile their monthly brokerage.
 
I don’t think IFAs like Mr.Alagappan, Mr.Desigan etc. who do large volumes and are one man army may even have time to reconcile and see whether AMCs are paying them correctly. Especially the SIP incentive matrixes, stepped up trail etc. are very difficult to reconcile even if someone has manpower to do the same.
 
I’ve a feeling that there may be procedural lapses on the part of AMCs and RTAs on payouts.
 
I would like to request you once again that in the best interest of all IFAs, you may kindly check with AMCs on the issues I mentioned in my earlier mail on ‘Payments by AMCs to advisors’.

I hear that we come across excess recovery often, but how frequently we get missing credits? Does this mean that AMCs always only over pay? My limited experience in the last one week based on few data points seems to say otherwise.

Regards

Muthu                                                           

D.MuthukrishnanCertified Financial Planner ^CM(CFP^CM)
Personal Financial Advisor

Mobile: +91-98404-03431

HSBC Mutual Fund Issue

I herewith forward the email received from one of friend IFA Mr. Bharat Bhushan JI from Noida.  

I had copied this to all the top executives of HSBC.  Let us see the response on this issue.  

Ramesh Bhat
IFA Galalxy
---------- Forwarded message ----------
From: Bharat Bhushan <bharat@moneyoptions.in>
Date: Thu, May 19, 2011 at 4:09 PM
Subject: HSBC Mutual Fund
To: IFA Galaxy <ifagalaxy@gmail.com>

I submitted a transmission case to HSBC Mutual Fund.
 
In Anyone or Survivor Basis folio, one of the holder had expired.
 
Death Certificate, KYC, Bank particulars, Nomination desired, were all intimated.
 
The AMC person admits that all desired information is there along with enclosures, but goes on to state that the survivor has not clearly mentioned what is desired.
 
I wonder if they have multiple option like, survivor expressing that the money can be used by HSBC Mutual Fund for its own welfare. 

Why HDFC MF not kept us informed about this? Can they do this?

Dear All,

HDFC Mutual Fund has been sending mails to clients directly asking them to switch to their Online facility. Should they not keep us informed about this?

We as advisors have to procure them clients but they send intimation directly to the client. Is this another way to poach clients?

Regards

Srinivasan S

MONEY KARE
At Money Kare,
We Care for your Money
Your Professional Investment Advisors
Mobile No. 9841016902

----- Forwarded Message ----
From: HDFC Mutual Fund <sendouts@hdfcfund.com>
To: v3951@yahoo.com
Sent: Tue, May 17, 2011 10:14:39 AM
Subject: Explore the Benifits of Transacting Online

Dear Unit holder Greetings from HDFC Mutual Fund! We observe from our records that in the recent past, you have transacted with us by sending your subscription request by paper i.e. using a transaction slip / form and a cheque. This communication is intended to make you aware of our popular online transaction facility - HDFCMFOnline. A large and ever growing segment of our unit holders choose to invest with us using the online facility as it is easy, fast, convenient, paperless and most of all - it is futuristic. Time is the essence in many of your investments and hence the online option is best suited for a unit holder like you. Your bank(s), as registered with us, allows net banking which is a pre- requisite along with enrolment for this facility. Our website www.hdfcfund.com has all the information you would need on HDFCMFOnline, including a guidance demo in terms of all options, process flow for transacting, advantages etc. Please click here to access the demo The application form for HDFCMFOnline is available online and at all our offices. Let us know if you are willing to consider this facility and we will be very pleased to assist. I am sure you will take out a few moments to explore this convenience and evince interest. You may call us on 1800 233 6767 or 6000 6767 (do not prefix any code) for any assistance. Thank you for being a very valued investor of HDFC Mutual Fund and wish you a great day ahead! Sincerely,     John Mathews  Senior Vice President & Head - Client Services

Reliance Mutual Fund Playing with Investors

Dear Agents,

There is a very long list of service issues with Reliance Mutual Fund.
But i would like to discuss only a few issues.

Issue No.1
The Logistics service used by Reliance is really hopeless. To set an
example my own brother's redemption cheques with two folios and same
address was not delivered. The reason been given was address not
found. How was the address found on the redemption cheque with lesser
value and not the one with higher value when both folios had same
address???

Issue No.2
Reliance SIP Insure....The SIP in SIP insure is deliberately rejected
for two consecutive times thus washing their hand with Insurance
coverage which clearly says coverage will be stopped on two
consecutive rejections. This has happened to lot of my clients.

Issue No.3
Sending redemption cheques to bankers address and that too with wrong
bank details and in most of the cases with incomplete address of
bankers even though the investor has opted for physical delivery of
cheque.

Issue No 4
Reliance sends SMS to customers stating their SIP is rejected. The SMS
contains partial folio for security reasons.Fine ,but it also says to
contact customer care for further details. But when they are contacted
they say they don't have any details regarding the same...Then why the
hell should the SMS be sent?


Still lot of issues are there with Reliance..My request to my
colleagues to highlight more such issue if you are facing ..

Regards

Satish Vagale
ARN 18868
licvagale@gmail.com

Serious problem for SIP in DSPBR, IDFC

Dear Friends,

                 There is a serious problem in SIP for CAMS related AMCs. From this month MAY 2011, many of my clients who r investing in SIP for CAMS related AMC's through Nationalized Banks have started calling me in regard with thier SIP not being debited from their bank a/c. When I tried reaching AMC as usual and verified their answer was not up to the point, they were telling all sorts of stories that RBI has cancelled the bank MICR Code and hence forth we can not do any ECS debit for any purpose be it MF/ Insurance / Car Loan / Personal Loan / Home Loan / etc...

                I was shocked to hear this then today 14/5/11 went along with my Client, to his Bank to find out what is the exact problem why there MICR code is rejected by RBI. The Manager of that particular Branch, Started laughing on us on hearing the same then as a child like I showed them the SIP statement that his SIP was cancelled. Then the Bank MAnager pitied on us then told that RBI can withdraw MICR Code only if the Bank closes that particular branch. He also told us that RBI has issued a notice to stop ECS debit on a/c which show their old A/C no i.e non core banking A/c nos. Even though our SIP has got core banking details our SIP debit with DSP BR and IDFC  had got cancelled for this reason. Then today I went to CAMS along with my client to find out that it not our fault/ banks fault. When we spoke with concerned people along with the AMC staff, every one was giving different answers. Then 1 staff in CAMS had told us that there r more than 1 crore SIPS running how is possible to which A/c is core banking or non core Banking hence they hv taken a bold step of cancelling all the SIPS in above 2 AMC as a first step, When all the clients run back to the AMC like us and lodge a complaint then will reprocess the same SIP.

              So I request you all to give me solution how to go fwd in this issue is practically possible for 1 IFA to check all the SIP debits now and individually ask the AMC to process the SIP. For this Client I have been following with both the AMC and out of the 6 SIPS 3 has been processed and 3 yet to be done. It is foolish on part of the AMC/ CAMS to tell us same reason for SIP cancellation when they themself has reprocessed the balence 3 SIP.

REgards,

Alagappan T

ARN- 39129841055577

Rejection of redemption request on flimsy grounds by Reliance MF

 Dear Sir/Madam,

 

One of my client  invested  small amounts in three schemes of  Reliance MF, (Rs.2000/-, Rs.10,000/- Rs.10,000/-)  three years back.  He  gave redemption request last week. as he needed money.

 

The fund promptly rejected all the three requests stating  reason " Signature Differs".    I have rarely  come across any rejection giving  this reason.  But so many questions arise in my mind which I would like to put forth before my  IFA  fraternity. for discussion.

 

1.  How important is this signature  mismatch, when you are not  making cash payment ?  To know the identity of the person receiving  cash  is very important  to ensure that right person is receiving the payment.

 

2.  But here AMC is making payment either through A/c  Payee crossed cheque or  direct credit to the investors a/c..  There is no question of any third party receiving the payment at all !. 

 

3.  Investors Bank a/c  is registered and printed in the MF statement after thorough verification.  Further,   investor's cancelled cheque leaf. is  also insisted  to make doubly sure !.   When  Account number cannot be wrong at all,  what risk is there to AMC in crediting  the amount to Bank A/c, wherever signature differs ?

 

4.  Signature is one of the means to identify a person and not the only means.  When photo, address, Pan number, Bank a/c details, all these match, should you still reject ? Then why  take all  detail other than signature. ! Withdraw KYC !

 

5. After rejection   AMC is  asking the investor to get his signature attested by the Bank Manager.  How does AMC ensure that the Bank Official  signature is genuine ?  It is assumed depending solely  on the Rubber stamp/letter head  used there. Crooks are always  more  intelligent.  They can easily get a Rubber stamp or letter head.  Mind it !   In strict sense AMC official should personally go to Bank to  cross verify.   !

 

6.  Besides. Bank  attestation is not that easy. There is always big  crowd in the Bank and Managers are too busy  to attend to a small  SB customer.  Investor has to face rude replies !.    Some Banks are collecting service charges for signature attestation. The Investor for having invested , is trapped ,  harassed  and humiliated. His time and money is wasted.

 

7. The transaction slip used for redemption is mostly from the original statement  held by the Investor. How can anybody steal it and forge ? Even then the amount goes to the genuine investors Bank a/c only.  why  is the worry ?  Again this is an assumption which do not happen in real.

 

8.  The Regulators were caught napping when major scams  occurred recently, right under their nose.  Their regulations have no meaning  and having only negative impact on the industry.  They look to  investors with suspicion and  IFAs as criminals !  Investors are being hounded basing on hypothetical assumptions !  Instead of punishing the guilty, all the investors are  harassed, 

 

To say "Signature does not match " and reject   payment is  utter foolishness  in present day context.  The AMCs, their R & T, staff are to be properly educated and should be mde to understand the consequences of their actions.  All MF investments does not yield profit,  In my customers case, after 3 yrs he is getting less than what  was  invested originally and received no dividends.  AMCs  should learn to be investor friendly and apply some common sense also.  Regulators/AMCs should not think that there is a very big queue waiting to invest in Mutual Funds,   Money flows to Mutual Funds only due to  Distributors efforts. 

 

With  Best Wishes,

Boodugere Nagaraj

ARN 5746