High AMFI registration fee is preventing a number of distributors from small towns to be a part of the distribution channel, feel experts.
Mutual Fund Advisory committee in its meeting early this week has suggested SEBI to reduce the ARN registration fee for distributors. The committee reportedly is of the view that the current registration fee is acting as a deterrent for attracting advisors, particularly from tier II and III cities.
Sources tell Cafemutual that SEBI could direct AMFI to slash the registration fee for attracting new IFAs from the hinterland.
The ARN renewal fee was hiked from Rs 250 to Rs 2500 for individuals and corporate employees from 01 June 2010. Individuals seeking new ARN license have to shell out Rs 5000. The fee was hiked across the board for all categories of distributors like banks, post offices, partnership firms, etc. AMFI had also reduced the validity period of ARN license from five years to three years.