AMFI has directed AMCs to freeze brokerage payable post April 01, 2011 if their empanelled distributors are not KYD compliant
Mumbai: AMFI, in its board meeting held on March 18, 2011 has decided not to further extend the deadline for KYD compliance beyond March 31, 2011.
It has also asked fund houses to halt commissions for the business from April 01 2011 if the IFAs are not KYD compliant. The commissions will be released only after the distributor completes the KYD procedure.
Only around 50 per cent to 60 per cent of distributors empanelled with each AMC are estimated to be KYD compliant.
Cafemutual had in the past reported about the developments in KYD procedure through a series of articles.
