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One of our readers wrote to us with this query:
My father died in 2021. However, since I don’t have any idea about the timeline of 6 months to transfer AUM, I could not apply for it. Now, it’s been over six months.
Is there any way through which I can transfer AUM in my name now?
Nitu via email
Dear Nitu,
We are so sorry to hear about the demise of your father.
Nominee or legal heir of a deceased MFD will have to obtain ARN within six months to transfer assets of the deceased MFD and continue to get trail income.
In simple words, AMFI gives six months to nominee or legal heir of a deceased mutual fund distributor to obtain ARN to complete the transfer formality. Ideally, the new distributor has to apply for cancellation of ARN of deceased distributor to CAMS-AMFI unit within 6 months of date of demise.
In any case, nominees or legal heirs are entitled to get trail commission on assets built before the demise of an ARN holder without obtaining a fresh ARN.
However, if a nominee wants to do fresh business or generate trail income on SIP inflows, she has to obtain the new ARN and transfer assets of deceased distributor.
Since it is beyond six months in your case, you can write to AMFI requesting relaxation. The power to give exemption is with AMFI ARN Committee.
We hope that we have addressed your query. Have a great day at work.
Regards,
Team Cafemutual
