Mumbai: Citing practical difficulties in complying with the commission disclosure clause, a group of distributors have shot off an email to H N Sinor, CEO, AMFI yesterday asking him to drop this clause.
In this letter, distributors have cited three main constraints which make commission disclosure very cumbersome. Firstly, AMCs communicate the commission structure to them during the second week of a month or a quarter which results in late flow of information to distributors.
Secondly, not all distributors in smaller towns and even in cities do business with all the AMCs. IFAs claim that such distributors are not apprised of the commissions by fund houses. The clause also says that distributors should disclose commission offered by “differing competing schemes of various mutual funds”. Distributors claim that this clause is ambiguous in nature and have sought clarity on the same.
Cafemutual had reported in the past about how distributors are reportedly finding compliance to this rule difficult.
AMFI is likely to take up this issue with its committee members soon after reviewing the ground situation.
