I am empanelled with a national distributor. They allotted me a sub broker code. I have done the plenty of business with them but in the last one year I am doing business with AMCs directly empanelling with them. But I came to know that I can switch or transfer my AUM from the national distributor to my individual ARN. If it is true what is the procedure to do so? Can I transfer the AUM on those AMC where I been empanel.
Kindly advise me.
Yes, it is possible to transfer the assets from your national distributor (ND) to your ARN. Please check with your ND for the exact procedure. You will need to ask for a NOC from the ND and your clients. Once you get the NOC, inform the respective AMCs about this transfer.
As per AMFI Best Practice Guidelines Circular No.15/2010-11, trail commission is neither paid to the old distributor nor the new distributor if the assets are transferred. "On change of distributor (ARN Code) and on transfer of AUM from one distributor (ARN Code) to another distributor (ARN Code), the trail commission in respect of transferred assets should not be paid to old distributor (ARN holder) as well as to new distributor (ARN holder). The amount of commission so saved be accounted for separately and utilized for the purpose of education of investor."
We suggest you check with the AMCs if they would pay you trail commission on business done through ND.
To answer your second question, (For instance, suppose you had sold schemes of DSP Black Rock through your ND and you are currently not empanelled with DSP, then we suggest you empanel with DSP Black Rock)
Let us know if you require any further assistance.