A reader wrote to us with this query,
Due to health reasons, I could not complete pending KYCs of my clients before August 20, 2019 to claim my withheld commission. Can I get my withheld commission, if I resolve pending KYC cases now?
Ramkishan, Chennai
Dear Ramkishan,
Trust your health is better now and you have fully recovered!
Yes, you can claim your withheld commission.
In August 2019, SEBI has asked fund houses to put pending commission of distributors in an escrow account.
An escrow account is a temporarily pass through account held by a third party during the process of a transaction between two or more parties. Distributors will get their pending commission once they complete all requirement due to which their commission was withheld. AMCs withhold commission including upfront commission for a number of reasons such as failed transactions, incomplete KYD, pending KYC, and so on.
This means distributors will be able to claim their pending commission even after August 20, 2019.
Once you resolve pending KYC cases, it is advisable to approach respective AMCs requesting them to pay your withheld commission.
