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’.
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(CFPCM)
Personal Financial Advisor
Personal Financial Advisor
Mobile: +91-98404-03431
7 comments:
Dear All IFA Family,
Really it is a serous issue. I have also under received from Reliance AMC. I personally visited AMC office and complained. And sent emails (following highlighted) to AMC and Karvy. But only they it will be sorted out soon. But nothing done in last 2 and half months. Only they paid
DEAR SIRS,
I HAVE NOT RECEIVED TRAIL COMMISSION FOR THE PERIOD OF 1 JAN 2011 TO 31 JAN 2011 FOR THE BELOW MENTIONED FOLIOS:-
VISION FUND --> 437XXXXXXXX (INDERJIT SINGH)
REG SVG---------- 421XXXXXXXXX (DILJEET SINGH)
GROWTH FUND -- 437XXXXXXXX (RAMAN GAMBHIR), 4379XXXXXXX (VIKAS KUMAR) AND 421XXXXXXX1 (KIRAN NARAYAN MOGHE)
Thanks & Regards,
SURENDER SINGH
ARN-66056
Personal Financial Advisor
Mobile: +91-98141-86640
Sir,
It's true that most IFAs operate as one man army and have very limited
bandwidth in terms of time, energy and resources to check the
correctness of the payment made by AMCs . We are relaying on AMCs and
are always under the impression that correct amount is paid to
us.There must be some kind of automatic systemeat AMCs level, to
re-pay the underpayment amount as good as the recovery systeme of
excess payment. AMCs must take this issue seriously. After all, for
all the hard work we do, the legitimate reward should not suffer due
to operational inefficiency.
This issue must be raised with the concern authoraties by all of us,
without delay.
ABDUL RASHID SHAIKH.
( ARN-29033 )
Dear Sir
This is a good point. The AMCs can provide the IFAs with brokerage tracking software. IFAs following the mercantile system of accounting cannot know at the end of March each year the accrued brokerage for best accounting practices. The software will facilitate it.
I believe some AMCs may be skimming the brokerage payable by restricting the NAV decimals to only 2 postions instead of 4 while calculating the units. This also need s to be taken up with the AMCs.
Best Regards
S. Rajagopal
Dear Mr Muthukrishnan,
noted the lines and please ensure how come the inefficiency on the part of AMCs. Since all the transactions are computerised, please be vivid to know on the reason.
c n annadurai
Respected Mr. Muthu.
Thank you very much for raising this common problem. I think this problem is facing by all IFA's. Is there any solution?
Regards.
manmatha halder mrhalder1940@gmail.com
A timely reminder to all the IFA community as your rightly pointed out we are ONE MAN ARMY busy in getting business , placing with AMCs or CAMS and believe in the so called ROBUST systmem / technology of Large AMCs. I being an IFA for over 3 years though my business has increased many folds my earnings post ENTRY LOADS have not really taken off and the complicated way of calculating TRAIN commission is at time beyond my grip.
In this hard time if even AMC s start cheating on us we will really go starving . It requires all IFAs coming together and raise their voice.
Keep us posted on other development as well.
rgds
Debraj Sengupta
ARN-38509
Kolkata
Dear Mr. Muthukrishnan,
Thank you for putting to light this issue.. even i never check..
thinking that what they send must be correct.
If you could share the name of the AMC, then we all can be extra
carefull and the AMC will also fear to get into such tactics.
Regards
Bhushan Shah
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