SUBSCRIBE NEWSLETTER
  • Change Language
  • English
  • Hindi
  • Marathi
  • Gujarati
  • Punjabi
  • Tamil
  • Telugu
  • Bengali
  • MF News AMFI may ask reason behind non-adherence to commission guidelines

    AMFI may ask reason behind non-adherence to commission guidelines

    AMFI is likely to ask those fund houses not complying with the best practices guidelines on new commission structure to explain the reason behind non-adherence.
    Nishant Patnaik Nov 23, 2015

    AMFI is likely to question fund houses who have not adhered to the best practices guidelines on new commission structure. The final decision will be taken at AMFI board meeting scheduled to be held on Tuesday, said a board member on the condition of anonymity.

    “Apart from regular reporting, AMFI will specifically ask the reason behind not adhering to the best practices circular from those fund houses that are reportedly not complying with it. This is affecting our business. AMFI should ensure better enforcement of such guidelines,” said the official quoted above.

    Another board member said that fund houses usually submit a periodic report approved by AMC’s board of directors on compliance with the best practices guidelines. The above question can be a part of this disclosure.

    A few days back, AMFI has reportedly approached SEBI seeking its recommendations on how to ensure compliance of best practices circular on commission among all its members. Sources said that this decision has been taken post the meeting.

    Earlier, AMFI had issued its best practices circular to AMCs in which it had asked fund houses to discontinue ‘upfronting’ of trail across all schemes. Also, it has put a cap of 1% on upfront commission and given freedom to fund houses to decide trail commission within the distributable TER.

    H N Sinor who was the then CEO of AMFI had told Cafemutual that 35 fund houses were adhering to the new commission guidelines. However, a few fund houses including Sundaram, JP Morgan, HSBC and Baroda Pioneer are reportedly not adhering to AMFI’s best practices guidelines.

    Have a query or a doubt?
    Need a clarification or more information on an issue?
    Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

    Click to clap
    Disclaimer: Cafemutual is an industry platform of mutual fund professionals. Our visitors are requested to maintain the decorum of the platform when expressing their thoughts and commenting on articles. Viewers are advised to refrain from making defamatory allegations against individuals. Those making abusive language or defamatory allegations will be blocked from accessing the web site.
    0 Comment
    Be the first to comment.
    Login or Sign up to post comments.
    More than 2,07,000 of your industry peers are staying on top of their game by receiving daily tips, ideas and articles on growth strategies. Join them and stay updated by subscribing to Cafemutual newsletters.

    Fill in the below details or write to newsdesk@cafemutual.com and subscribe to Cafemutual Newsletter now.