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  • Ask Us ‘Agents can use words like retirement coach if such a usage is linked to an insurance policy’

    ‘Agents can use words like retirement coach if such a usage is linked to an insurance policy’

    Ask us: MFDs cannot use words like consultant or coach to promote mutual fund distribution business.
    Nishant Patnaik Dec 29, 2021

    One of our readers sent this query to us:

    Dear Team Cafemutual,

    I am an MFD and have a sub-broking license in my wife’s name to distribute life and general insurance. We also deal in loans.

    My query is: Since we distribute guaranteed income plan of insurance and recommend SWP to generate regular income post retirement, can we use the word ‘Retirement Coach’ to promote our services on social media?

    Prasad Chitre, Falcon Finvest

     

    Dear Prasad,

    Hope you are doing well and staying healthy and safe!

    While SEBI norms explicitly say that individuals other than SEBI registered investment advisor (MFDs in this case) cannot use words like consultant or coach, there is no such restriction in the insurance industry.

    Simply put, you are not allowed to use words like advisor, consultant or coach to promote your mutual fund distribution business.

    However, since insurance policies are regulated by IRDAI, you can use such words to promote insurance products.

    So to answer your question, you may use the word retirement coach only if you clearly mention in the promotional material that the use of word is linked to an insurance policy.

    Hope we were able to resolve your query.

    Regards,

    Team Cafemutual

    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

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