SUBSCRIBE NEWSLETTER
  • Change Language
  • English
  • Hindi
  • Marathi
  • Gujarati
  • Punjabi
  • Tamil
  • Telugu
  • Bengali
  • Ask Us ‘You cannot transfer AUM from national distributor to your ARN’

    ‘You cannot transfer AUM from national distributor to your ARN’

    Partial transfer of assets is no longer allowed.
    Team Cafemutual Apr 23, 2019

    Two readers wrote to us with the following queries.

    What if I transfer my AUM from the national distributor to my individual ARN? Is an NOC mandatory?

    Karan and Nivesh Finserv

    Transferring assets from a national distributor to your ARN is no longer possible. This is because AMFI has done away with partial transfer of assets. Transfer of AUM is allowed only if you transfer your entire assets to the new distributor.

    Remember, the same holds true for transfer of assets from your ARN to a national distributor unless you decide to exit the distribution business. Distributors are no longer allowed to transfer their assets partially to a national distributor to gain access to their online execution services. A senior official of a national distributor told Cafemutual that such transfer of assets accounts for 25% of the total B2B transactions. “This would be a major blow to the industry as partial transfer of assets between national distributors and individual ARN holders is over one-fourth of the total transfer of assets among mutual fund distributors.”

    Earlier, it was possible to transfer the assets from your national distributor to your ARN. Distributors were required to obtain an NOC from national distributors and clients and inform respective AMCs about this transfer.

    Compliance officials of two national distributors have confirmed that such a transfer is no longer allowed after AMFI issued the new norms on transfer of assets. However, we strongly advise you to contact your national distributor to know more about such a transaction.

    If my client wants to change the ARN code i.e. from the national distributor’s ARN code to an individual ARN code, who will get the trail income?

    Unfortunately, there will be no trail commission on such a transaction. The trail commission so generated would go to IAP corpus.

    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.
    1 Comment
    Meera kumari · 5 years ago `
    My mother was a distributer.ARN was 77107 .she had died .I want to transfer AUM of my mother into my ARN 154043 .but my mother 's nominee is my father.Is it possible the changing? Kindly tell me about above transfer.
    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.
    Cafemutual is an independent media platform and focuses on providing knowledge and information for the benefit of finance professionals. We do not promote any particular brand or asset category.